/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070917.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, September 17, 2007, Vol. 8, No. 184 Headlines A U S T R I A ELISENSTRASSE 43: Vienna Court Orders Business Shutdown FRISEUR & HAARMODE: Claims Registration Period Ends Oct. 3 GOLFMASTER LLC: Claims Registration Period Ends Oct. 3 HOFMANN UND KRYSPIN: Claims Registration Period Ends Oct. 3 INNENPUTZ LLC: Claims Registration Period Ends Sept. 19 SALMHOFER LLC: Claims Registration Period Ends Sept. 28 SCHNEIDER LLC: Claims Registration Period Ends Sept. 28 WUERZLER HANDWERKSTATTE: Claims Registration Ends Sept. 28 B E L G I U M ARVINMERITOR INC: Appoints Joe Plomin as VP for CVS Truck Unit CHIQUITA BRANDS: Eyes Higher Operating Expenses in Third Quarter D E N M A R K BLOCKBUSTER INC: Names Tom Casey as VP & Chief Financial Officer F I N L A N D HILTON HOTELS: Launches Cash Tender Offers for US$1.8-Bln Debt F R A N C E ALCATEL-LUCENT SA: Cuts Full Year 2007 Revenue Forecast to Flat ALCATEL-LUCENT: Adverse Trading Update Cues S&P’s BB- Ratings ASPEN TECHNOLOGY: Reports Preliminary Fourth Quarter Results DELPHI CORP: Gets Nod to File GM Settlement Exhibits Under Seal INNOVATIVE COMM: Stan Springel Appointed as Chapter 11 Trustee VERINT SYSTEMS: Victor DeMarines Joins Board of Directors G E R M A N Y ASAT HOLDINGS: Pays US$6.9 Million Interest on 9.25% Sr. Notes ASAT HOLDINGS: Interest Payment Cues S&P to Lift Ratings to CCC- AUDIO-VIDEO-SERVICE: Creditors Must File Claims by October 8 BACKWAREN FINGERHUT: Claims Registration Period Ends Oct. 15 BIB BAU- UND INDUSTRIEBEDARF: Claims Registration Ends October 4 BIO REITER: Claims Registration Period Ends Oct. 13 CATTO ANIMATION: Claims Registration Ends Sept. 28 CHRYSLER LLC: Health Fund Remains Main Sticking Point in Talks DIERKS GMBH: Claims Registration Ends Sept. 28 EMA-PLAY SPIELHALLEN: Claims Registration Period Ends Oct. 15 GRUNDSTUECKSGESELLSCHAFT DIERKS: Claims Filing Ends Sept. 28 GUSTAV BERGMANN: Claims Registration Ends October 5 HELLHAUS GMBH: Claims Registration Ends Sept. 28 HERTH GASTRONOMIE: Claims Registration Ends October 1 HWZ HAUSWIRTSCHAFTSDIENSTE: Creditors Must File Claims October 5 MEGAFIT GMBH: Claims Registration Period Ends Oct. 12 NEUMANN VERTRIEB: Creditors Must File Claims by October 8 SCHWICHTENBERG FOOD: Claims Registration Period Ends Oct. 26 TETZ BACKES: Claims Registration Ends October 2 TEXTILE FINISHING: Claims Registration Period Ends Oct. 26 TOP FARBBILDDISCOUNT: Claims Registration Period Ends Oct. 26 WAGNER WERTPAPIERHANDELSHAUS: Claims Registration Ends Oct. 29 G R E E C E EASTMAN KODAK: S&P Holds B+ Rating and Removes Negative Watch H U N G A R Y SUN MICROSYSTEMS: Inks Deal to Acquire Majority of Cluster File I R E L A N D STRUCTURED CREDIT: Irish Court Appoints Restructuring Examiner W.R. GRACE: Andrew Bonham to Lead Construction Products Biz Unit I T A L Y PARMALAT SPA: Earns EUR244.3 Million for First Half 2007 TRW AUTOMOTIVE: Brings Integrated Safety to Vehicle Markets XEROX CORPORATION: To Acquire Advectis for US$32 Million K A Z A K H S T A N AGYBAI LLP: Proof of Claim Deadline Slated for Oct. 19 AMIL LLP: Creditors Must File Claims Oct. 19 ANASTASIYA LLP: Claims Filing Period Ends Sept. 20 AS-TORG LLP: Creditors' Claims Due on Oct. 19 GAISA LLP: Claims Registration Ends Oct. 19 MANGISTAU ELECTRICITY: Fitch Rates IDR at BB+; Stable Outlook NIKOLAS LLP: Proof of Claim Deadline Slated for Oct. 12 NNS-PROLOGIC LLP: Creditors Must File Claims Oct. 19 OLTIS LLP: Claims Filing Period Ends Sept. 27 SILICH & K: Creditors' Claims Due on Sept. 27 VOKZAL-SERVICE JSC: Claims Registration Ends Oct. 19 K Y R G Y Z S T A N REGIONAL TRANS: Proof of Claim Deadline Slated for October 19 N E T H E R L A N D S FOOT LOCKER: Warns Non-Compliance with Fixed Charge Ratio FOOT LOCKER: S&P Retains BB+ Ratings Under Negative Watch GLOBAL POWER: Disclosure Statement Hearing Set for October 9 GLOBAL POWER: Court Extends Exclusivity Period to September 28 P O L A N D AFFILIATED COMPUTER: Extends Contract with Hawaii Medicaid R U S S I A ALFA-OBL-STROY: Creditors Must File Claims by Sept. 25 AVEST OJSC: Creditors Must File Claims by Sept. 25 BRYANSK-GLASS LLC: Creditors Must File Claims by Oct. 25 BUGURUSLAN-AGRO-PROM-SNAB: Creditors Must File Claims by Oct. 25 DYURTYULINSKOE MIXED: Asset Sale Slated for September 24 EAST-CHUKOTKA GOLD: Court Names S. Aliev as Insolvency Manager GSM-TRADE LLC: Creditors Must File Claims by Sept. 25 IZH-MASH-SERVICE: Bankruptcy Hearing Slated for Oct. 11 KADOM-AGRO-PROM-SERVICE: Creditors Must File Claims by Oct. 25 KAMA-OIL LLC: Tatarstan Bankruptcy Hearing Slated for Dec. 13 NOVOROSSIYSK COMMERCIAL: Moody's Lifts Loan Rating to Ba1 RADAR CJSC: Creditors Must File Claims by Oct. 25 RESERVE LLC: Creditors Must File Claims by Oct. 25 ROSNEFT OIL: State Eyes 50% Volgotanker Stake Sale to Firm TRANS-FLOT CJSC: Court Names V. Lukyanov as Insolvency Manager TSAREVSKIY MEAT: Chuvashiya Bankruptcy Hearing Slated for Oct. 9 VOLGOTANKER OAO: Samara Officials Eye 50% Stake Sale to Rosneft ZENIT CJSC: Creditors Must File Claims by Sept. 25 S P A I N ANIXTER INT'L: Promotes Two Officers to Executive Positions GENERAL CABLE: Inks US$735-Mln Purchase Deal w/ Freeport-McMoran IM CAJAMAR: Moody's Junks EUR15 Million Series E Notes IM CAJAMAR 5: Fitch Junks EUR15 Million Class E Notes S W E D E N BOMBARDIER INC: Supports Transport Canada Directive for Q400 VIRANATIVE AB: Files for Bankruptcy Protection in Sweden S W I T Z E R L A N D EINHELL HOLDING: Creditors' Liquidation Claims Due September 30 ERMA IMMOBILIEN: Creditors' Liquidation Claims Due October 4 FIRST ASSET: Creditors' Liquidation Claims Due September 24 GIGALOAD LLC: Creditors' Liquidation Claims Due September 24 LAZARD LTD: Opens Zurich Office; Rolf Bachmann to Lead Swiss Biz NOVATEX TRADING: Creditors' Liquidation Claims Due September 27 NURHAK LLC: Creditors' Liquidation Claims Due September 27 PRIME FORESTRY: Creditors' Liquidation Claims Due October 31 RASEN & GARTEN LLC: Creditors' Liquidation Claims Due Sept. 26 STILLCLOUD JSC: Creditors' Liquidation Claims Due September 28 V-CONSULTING JSC: Creditors' Liquidation Claims Due September 24 U K R A I N E AGROCENTRMET LLC: Creditors Must File Claims by September 18 ALKOPROM CJSC: Claims Submission Deadline Set September 18 MECHANICAL FOUNDATION: Creditors Must File Claims by Sept. 18 MRIYA LLC: Creditors Must File Claims by September 18 SADOVOE OJSC: Creditors Must File Claims by September 18 SAMSON LLC: Creditors Must File Claims by September 18 SELECTION OJSC: Claims Submission Deadline Set September 18 STATEK LTD: Creditors Must File Claims by September 18 SPUTNIKI LLC: Creditors Must File Claims by September 18 UKRAINE LLC: Creditors Must File Claims by September 18 * S&P Rates City of Odessa Long-term Issuer Credit at B+ U N I T E D K I N G D O M ACORDIS UK: Calls In Liquidators from Deloitte & Touche ARTHUR HENRIQUES: J. M. Titley Leads Liquidation Procedure ASSET LOFT: Claims Filing Period Ends September 28 AXON FINANCIAL: Fitch Cuts US$890 Mln Notes’ Ratings to BB- BASIS YIELD: U.S. Court Extends Injunction Until Nov. 19 BASIS YIELD: S&P Withdraws Fund Rating After Picking Liquidators BASIS YIELD: Liquidators' Motion for Cayman Process Recognition BERRY BIRCH: Brings In Liquidators from KPMG CLASSICAL PROM: Names Stephen John Tancock Liquidator DURA AUTOMOTIVE: Wants Court to Bless Disclosure Statement DURA AUTOMOTIVE: Wants Court Nod on Solicitation Procedures EMI GROUP: Redeems Outstanding GBP325 Million Bonds EUROTECHNIX LTD: Creditors' Meeting Slated for Sept. 25 FORD MOTOR: Health Fund Remains Main Sticking Point in Talks GENERAL MOTORS: Health Fund Remains Main Sticking Point in Talks HERMES XIV: Fitch Rate's EUR18 Million Class E Notes at BB INTERNATIONAL RECTIFIER: Accounting Errors Cue 10-K Filing Delay INTERNATIONAL RECTIFIER: S&P Retains Negative Watch on BB Rating LCS COMBINED: Appoints Liquidators from BDO Stoy Hayward METRONET GROUP: London Underground Eyes Contract Restructuring NORTHERN ROCK: Seeks Outside Help to Avert Liquidity Crisis PROTON HOLDINGS: Abdullah Denies VW Reports Asking for 20% Stake PROTON HOLDINGS: Unit Bags MYR4 Mil. Supply Deal with Toyota R.A. GANDER: Joint Liquidators Take Over Operations SPRAY PROCESSES: Brings In Liquidators from BDO Stoy Hayward SUNDANCE SPAS: Claims Filing Period Ends October 16 THERMOMAX LTD: Creditors' Meeting Slated for Sept. 26 TRIMFOAM UK: Hires Liquidators from DTE Leonard Curtis VETERINARY PRACTICE: Calls In Liquidators from PwC VICTORIA MORTGAGE: Names Joint Administrators from KPMG VIRAGEN INC: Swedish Unit Files for Bankruptcy Protection VISCOUNT TOWN: Taps Liquidators from UHY Hacker Young WINDMILL CLO I: S&P Rates EUR15 Million Class E Notes at BB- * Deloitte Appoints Two Members to its Executive Group * BOND PRICING: For the Week Sept. 10 to Sept. 14, 2007 ********* ============= A U S T R I A ============= ELISENSTRASSE 43: Vienna Court Orders Business Shutdown ------------------------------------------------------- The Trade Court of Vienna entered Aug. 17 an order shutting down the business of LLC Elisenstrasse 43 (FN 91553m). Court-appointed estate administrator Christian Bachmann recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Christian Bachmann c/o Dr. Eva-Maria Bachmann-Lang Opernring 8 1010 Vienna Austria Tel: 512 87 01-Serie Fax: 513 82 50 Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Aug. 9 (Bankr. Case No 2 S 108/07f). Eva-Maria Bachmann-Lang represents Dr. Bachmann in the bankruptcy proceedings. FRISEUR & HAARMODE: Claims Registration Period Ends Oct. 3 ---------------------------------------------------------- Creditors owed money by LLC Friseur & Haarmode (FN 234244b) have until Oct. 3 to file written proofs of claim to court-appointed estate administrator Robert Gschwandtner at: Dr. Robert Gschwandtner c/o Dr. Peter Pullez Tuchlauben 8 1010 Vienna Austria Tel: 513 29 79 Fax: 513 29 79 25 Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on Oct. 17 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Aug. 17 (Bankr. Case No. 4 S 94/07m). Peter Pullez represents Dr. Gschwandtner in the bankruptcy proceedings. GOLFMASTER LLC: Claims Registration Period Ends Oct. 3 ------------------------------------------------------ Creditors owed money by LLC GolfMaster (FN 147292g) have until Oct. 3 to file written proofs of claim to court-appointed estate administrator Johanna Abel-Winkler at: Mag. Johanna Abel-Winkler c/o Mag. Norbert Abel Franz Josefs-Kai 49/19 1010 Vienna Austria Tel: 533 52 72 Fax: 533 52 72 15 Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:15 a.m. on Oct. 17 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Aug. 14 (Bankr. Case No. 4 S 92/07t). Norbert Abel represents Mag. Abel-Winkler in the bankruptcy proceedings. HOFMANN UND KRYSPIN: Claims Registration Period Ends Oct. 3 ----------------------------------------------------------- Creditors owed money by LLC Hofmann und Kryspin (FN 215038h) have until Oct. 3 to file written proofs of claim to court- appointed estate administrator Edmund Roehlich at: Dr. Edmund Roehlich c/o Dr. Richard Proksch Heumarkt 9/I/11 1030 Vienna Austria Tel: 713 46 51 Fax: 713 84 35 Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Oct. 17 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Aug. 17 (Bankr. Case No. 4 S 93/07i). Richard Proksch represents Dr. Roehlich in the bankruptcy proceedings. INNENPUTZ LLC: Claims Registration Period Ends Sept. 19 ------------------------------------------------------- Creditors owed money by LLC Innenputz (FN 104296b) have until Sept. 19 to file written proofs of claim to court-appointed estate administrator Christian Kleinszig at: Dr. Christian Kleinszig Unterer Platz 11 9300 St. Veit/Glan Austria Tel: 04212/2040 Fax: 04212/28122 Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Sept. 25 for the examination of claims. The meeting of creditors will be held at: The Land Court of Klagenfurt Conference Hall 225 Second Floor Klagenfurt Austria Headquartered in St. Veit/Glan-Hunnenbrunn, Austria, the Debtor declared bankruptcy on Aug. 22 (Bankr. Case No. 40 S 40/07h). SALMHOFER LLC: Claims Registration Period Ends Sept. 28 ------------------------------------------------------- Creditors owed money by LLC Salmhofer (FN 59877f) have until Sept. 28 to file written proofs of claim to court-appointed estate administrator Franz Doppelhofer at: Mag. Franz Doppelhofer Reitschulgasse 1 8010 Graz Austria Tel: 0316/810030 Fax: 0316/810080 Creditors and other interested parties are encouraged to attend the creditors' meeting at 4:10 p.m. on Oct. 11 for the examination of claims. The meeting of creditors will be held at: The Land Court of Graz Hall L Room 230 Second Floor Graz Austria Headquartered in St. Florian, Austria, the Debtor declared bankruptcy on Aug. 21 (Bankr. Case No. 25 S 98/07k). SCHNEIDER LLC: Claims Registration Period Ends Sept. 28 ------------------------------------------------------- Creditors owed money by LLC Schneider (FN 247394s) have until Sept. 28 to file written proofs of claim to court-appointed estate administrator Stefan Kohlfuerst at: Mag. Stefan Kohlfuerst c/o Dr. Heimo Hofstatter Marburgerkai 47 8010 Graz Austria Tel: 0316/815454 Fax: 0316/81545422 E-mail: advokat@hofstaetter.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 3:25 p.m. on Oct. 11 for the examination of claims. The meeting of creditors will be held at: The Land Court of Graz Hall L Room 230 Second Floor Graz Austria Headquartered in Zettling, Austria, the Debtor declared bankruptcy on Aug. 17 (Bankr. Case No. 25 S 96/07s). Heimo Hofstatter represents Mag. Kohlfuerst in the bankruptcy proceedings. WUERZLER HANDWERKSTATTE: Claims Registration Ends Sept. 28 ---------------------------------------------------------- Creditors owed money by LLC Wuerzler Handwerkstatte (FN 70209z) have until Sept. 28 to file written proofs of claim to court- appointed estate administrator Wolfgang Reinisch at: Dr.Wolfgang Reinisch LLC Reinisch & Wisiak Rechtsanwalte Hauptplatz 28 8430 Leibnitz Austria Tel: 03452/83 2 96 Fax: 03452/83 2 96-20 Creditors and other interested parties are encouraged to attend the creditors' meeting at 3:40 p.m. on Oct. 11 for the examination of claims. The meeting of creditors will be held at: The Land Court of Graz Hall L Room 230 Second Floor Graz Austria Headquartered in Arnfels, Austria, the Debtor declared bankruptcy on Aug. 20 (Bankr. Case No. 25 S 97/07p). ============= B E L G I U M ============= ARVINMERITOR INC: Appoints Joe Plomin as VP for CVS Truck Unit -------------------------------------------------------------- ArvinMeritor, Inc. has named Joe Plomin as vice president of the Truck business unit within Commercial Vehicle Systems (CVS), effective immediately. The newly formed truck unit is now one of four CVS business units -- the others are Aftermarket, Specialty, and Trailers. In his new role, Mr. Plomin will be responsible for the overall development of product marketing and strategic planning, program management, sales and service, pricing, delivery, and customer relations for the Truck unit - which encompasses axle, brake and driveline sales to global truck manufacturers. "With his significant background in marketing, sales and strategic planning, Joe will accelerate the various activities we have initiated to improve all aspects of our performance," said Carsten Reinhardt, president, CVS. "We are delighted that Joe has decided to join our team." Before joining ArvinMeritor, Mr. Plomin most recently served as senior vice president, Sales, Marketing and Product Line Management for Remy International in Anderson, Ind. He has more than 20 years of experience in heavy duty and automotive component development, marketing and sales. Mr. Joe Plomin holds a bachelor's of arts degree in Economics from Knox College in Galesburg, Illinois, United States. About ArvinMeritor Inc. Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM) -- http://www.arvinmeritor.com/-- is a premier US$8.8 billion global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets. ArvinMeritor employs approximately 29,000 people at more than 120 manufacturing facilities in 25 countries. These countries are: China, India, Japan, Singapore, Thailand, Australia, Venezuela, Brazil, Argentina, Belgium, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Spain, Sweden, Switzerland, United Kingdom, among others. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. * * * Moody's Investor Services rated B3 ArvinMeritor Inc.'s long term corporate family and probability of default on January 2007. Moody's said the outlook is stable. CHIQUITA BRANDS: Eyes Higher Operating Expenses in Third Quarter ---------------------------------------------------------------- Chiquita Brands International expects its operating expenses to increase US$30 million in the third quarter 2007, from the third quarter of 2006, due to higher costs, the Business Courier of Cincinnati reports. Chiquita Brands told the Business Courier that the costs include expenses for: -- new product introductions, -- brand support, -- merchandising, and -- food safety. Higher banana prices in most of its markets wouldn't offset increased expenses in the third quarter 2007, the Business Courier says, citing Chiquita Brands. According to Chiquita Brands' news release, no further charges will be filed on the company's protection payments to Colombian terrorist groups. The Business Courier notes that these are increases in banana prices: -- 5% in North American markets, -- 17% on a US dollar basis in core European markets, -- 12% in Asia Pacific and the Middle East, and -- 43% in trading markets, which include European and Mediterranean nations not belonging to the European Union. Chiquita Brands Chief Executive Officer and Chairperson Fernando Aguirre said in a news release, "Despite the near-term issues, we believe we are on the right track and expect to report a greater level of year-on-year improvement in the fourth quarter, which would continue the positive year-on-year trend." Chiquita Brands told the Business Courier that hurricanes Dean and Felix "minimally affected" its banana supplies. Meanwhile, "European supplies suffered significant damage, which will produce more favorable pricing." Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide, including Belgium, Columbia, Germany, Panama, Philippines, among others. * * * As reported in the Troubled Company Reporter on May 16, 2007, Moody's Investors Service Ratings affirmed these ratings on Chiquita Brands International Inc.: (i) corporate family rating at B3; (ii) probability of default rating at B3; (iii) US$250 million 7.5% senior unsecured notes due 2014 at Caa2(LGD5, 89%); and (iv) US$225 million 8.875% senior unsecured notes due 2015 at Caa2 (LGD5, 89%). Moody's changed the rating outlook for Chiquita Brands to negative from stable. Troubled Company Reporter reported on May 4, 2007, that Standard & Poor's Ratings Services placed its 'B' corporate credit and other ratings on Cincinnati, Ohio-based Chiquita Brands International Inc. on CreditWatch with negative implications, meaning that the ratings could be lowered or affirmed following the completion of their review. Total debt outstanding at the company was about US$1.3 billion as of March 31, 2007. ============= D E N M A R K ============= BLOCKBUSTER INC: Names Tom Casey as VP & Chief Financial Officer ---------------------------------------------------------------- Blockbuster Inc. has appointed Thomas M. Casey as the company's new Executive Vice President and Chief Financial Officer. Most recently a managing director for Deutsche Bank Securities, Inc., Mr. Casey was responsible for the bank's retail industry relationships in North America and, in that capacity over the course of the past nine years, served as a strategic financial advisor to some of the world's largest companies in the retail entertainment, food and drug, convenience store, food wholesale and foodservice industries. Prior to Deutsche Bank, Mr. Casey held investment banking positions with Citigroup, Merrill Lynch, and Dillon Read & Co. "Throughout his more than 20-year career, Tom has been instrumental in helping some of the world's largest companies successfully formulate their financial and strategic business plans for the future," said Jim Keyes, Blockbuster Chairman and Chief Executive Officer "We are very excited to have Tom join our executive team and believe he will contribute significantly to our efforts to pursue the profitable transformation of Blockbuster from a video retailer into a completely convenient source for media entertainment." In his new position, Mr. Casey will have responsibility for Blockbuster's financial, accounting and internal audit functions. Mr. Casey earned a Bachelor of Science degree from the U.S. Naval Academy, served as an officer in the U.S. Navy and received his MBA from Harvard Business School. As of the end of September, Larry Zine, Executive Vice President, Chief Financial Officer and Chief Administrative Officer, who has been with the company since 1999, will be retiring from Blockbuster. "We appreciate Larry's leadership and his many contributions to Blockbuster over the past eight years," said Mr. Keyes. About Blockbuster Inc. Headquartered in Dallas, Texas, Blockbuster Inc. (NYSE: BBI, BBI.B) -- http://www.blockbuster.com/-- provides in-home movie and game entertainment, with more than 9,000 stores throughout the Americas, Europe, Asia and Australia. The company maintains operations in Brazil, Mexico, Denmark, Italy, Taiwan, Australia, among others. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 8, 2007, Moody's Investors Service downgraded Blockbuster Inc.'s corporate family rating to Caa1, its senior secured credit facilities to B3, and speculative grade liquidity rating to SGL-4. In addition, Moody's affirmed the senior subordinated notes rating at Caa2. Moody's said the rating outlook remains negative. ============= F I N L A N D ============= HILTON HOTELS: Launches Cash Tender Offers for US$1.8-Bln Debt -------------------------------------------------------------- Hilton Hotels Corporation has commenced cash tender offers for approximately US$1.8 billion of its outstanding unsecured debt securities. The Securities comprise the 8.000% Quarterly Interest Bonds due 2031 and the 7.430% Chilean Inflation-Indexed (UF) Notes due 2009. The tender offer for each series of Securities is being conducted concurrently with a related consent solicitation to amend the terms of such Securities and the indenture pursuant to which the Securities were issued. The tender offers and consent solicitations are being conducted in connection with the previously announced merger agreement that provides for the acquisition of Hilton by BH Hotels LLC, an entity controlled by investment funds affiliated with The Blackstone Group L.P. The completion of the tender offers and consent solicitations is not a condition to completion of the Merger. The offer for each issue of Securities will expire at 8:00 a.m., New York City time, on Oct. 11, 2007, unless extended or earlier terminated by Hilton. Holders who wish to receive the total consideration for the Securities referred to below must validly tender and not validly withdraw their Securities at or prior to 5:00 p.m., New York City time, on Sept. 25, 2007, unless extended or earlier terminated. Holders tendering their Securities will be required to consent to proposed amendments to the Securities, the Indenture and the related officers' certificates, which would eliminate substantially all of the restrictive covenants contained in the Securities, the Indenture and the related officers' certificates, eliminate certain events of default, modify or eliminate covenants regarding consolidations, mergers and sale of assets and company reports and modify or eliminate certain other provisions, including, without limitation, certain provisions relating to defeasance contained in the Securities, the Indenture and the related officers' certificates. Holders may not tender their Securities without also delivering consents and may not deliver consents without also tendering their Securities. The total consideration for each US$1,000 principal amount of Notes validly tendered and not validly withdrawn pursuant to each tender offer is the price (calculated as described in the Offer to Purchase referred to below) equal to (i) the sum of (a) the present value, determined in accordance with standard market practice, on the Scheduled Payment Date (as defined in the Offer to Purchase referred to below) of US$1,000 on the applicable maturity date for the Notes specified in the table below plus (b) the present value on the Scheduled Payment Date of the interest that would be payable on, or accrue from, the last interest payment date prior to the Scheduled Payment Date until the applicable maturity date for such Notes, in each case determined on the basis of a yield to such maturity date equal to the sum of (A) the yield to maturity on the applicable benchmark security, as calculated by Bear, Stearns & Co. Inc. in accordance with standard market practice, based on the bid-side price of such reference security as of 11:00 a.m., New York City time, on Oct. 5, 2007, unless modified by Hilton in its sole discretion, as displayed on the page of the Bloomberg Government Pricing Monitor plus (B) the Applicable Spread (as shown in the table below), minus (ii) accrued and unpaid interest to, but not including, the Scheduled Payment Date. The total consideration for each US$25.00 principal amount of Bonds validly tendered and not validly withdrawn pursuant to the tender offer for the Bonds is US$25.125. The total consideration for each CLP50,000 original principal amount of CLP Notes validly tendered and not validly withdrawn pursuant to the tender offer for the CLP Notes is US$119.53. The total consideration for each CLP50,000 original principal amount of CLP Notes represents a price of approximately US$1,028.72 per US$1,000 Adjusted Principal Amount, converted at the Observed Exchange Rate (as defined in the CLP Notes) on Sept. 11, 2007. The foregoing translation is solely for the convenience of the holders of CLP Notes; the CLP Notes Total Consideration is fixed and will not be adjusted for exchange rate movements or changes in the Adjusted Principal Amount during the pendency of the Offer for such CLP Notes. The total consideration for the Securities described above includes a consent payment of US$30.00 per US$1,000 principal amount of Notes, US$1.00 per US$25.00 principal amount of Bonds and US$3.00 per CLP50,000 original principal amount of CLP Notes. Subject to the terms and conditions of the tender offers and the consent solicitations, the consent payment will be made on the payment date in respect of Securities validly tendered and not validly withdrawn and as to which consents to the proposed amendments are delivered at or prior to the Consent Payment Deadline. Holders of the Securities must validly tender and not validly withdraw Securities at or prior to the Consent Payment Deadline in order to be eligible to receive the applicable total consideration (which includes the applicable consent payment described in the foregoing sentence) for such Securities purchased in the tender offers. Holders who validly tender their Securities after the Consent Payment Deadline and at or prior to the Offer Expiration Date will be eligible to receive the tender offer consideration which is an amount, paid in cash, equal to the applicable total consideration less the applicable consent payment. In each case, holders whose Securities are accepted for payment in the tender offers will receive accrued and unpaid interest in respect of such purchased Securities from the last interest payment date preceding the payment date to, but not including, such payment date. Each tender offer and consent solicitation is being made independently of the other tender offers and consent solicitations and Hilton reserves the right to terminate, withdraw or amend each tender offer and consent solicitation independently of the other tender offers and consent solicitations at any time and from time to time. The tender offers and consent solicitations relating to the Securities are made upon the terms and conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated Sept. 12, 2007, and the related Consent and Letter of Transmittal. The tender offers and consent solicitations are subject to the satisfaction of certain conditions, including receipt of consents sufficient to approve the proposed amendments and the Merger having occurred, or such Merger occurring substantially concurrent with the Offer Expiration Date. Further details about the terms and conditions of the tender offers and the consent solicitations are set forth in the Offer to Purchase. Hilton has retained Bear, Stearns & Co. Inc. and UBS Investment Bank to act as the lead Dealer Managers for the tender offers and lead Solicitation Agents for the consent solicitations, and they can be contacted at (877) 696-BEAR (toll-free) ((212) 272- 5112 (collect)) and (888) 719-4210 (toll-free) ((203) 719-4210 (collect)), respectively. Banc of America Securities LLC, Deutsche Bank Securities Inc., Goldman, Sachs & Co., Lehman Brothers Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley & Co. Incorporated are also acting as Dealer Managers and Solicitation Agents in connection with the tender offers and the consent solicitations. The Offer to Purchase and other documents relating to the tender offers and consent solicitations are expected to be distributed to holders beginning today. Requests for documentation may be directed to Global Bondholder Services Corporation, the Information Agent, which can be contacted at (212) 430-3774 (for banks and brokers only) or (866) 924-2200 (for all others toll- free). Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Australia, Austria, Barbados, Finland, India, Indonesia, Trinidad and Tobago, Philippines and Vietnam. * * * As reported on May 1, 2007, Standard & Poor's Ratings Services said its rating and outlook on Hilton Hotels Corp. (BB+/Stable/--) would not be affected by the company's announcement that it has entered into an agreement with Morgan Stanley Real Estate to sell up to 10 hotels for approximately US$612 million in proceeds (net of property level debt repayment, taxes, and transaction costs). Upon the close of the transactions, Hilton Hotels plans to use the net proceeds to repay debt. Standard & Poor's rating upgrade for Hilton Hotels in March 2007 incorporated the expectation that the company would sell a meaningful level of additional assets over the near term, which would likely lead to additional debt reduction. Still, Standard & Poor's is encouraged by the expected transaction multiple related to today's announcement. If the lodging transaction market remains strong, enabling Hilton Hotels to generate substantial proceeds from remaining asset sales, if these proceeds are used for debt reduction, and if the lodging environment remains strong, an outlook revision to positive could be considered as 2007 progresses. Any movement signaling the potential for a higher rating will depend on Hilton Hotels's commitment to maintaining credit measures aligned with higher ratings over the lodging cycle. In February 2007, Moody's Investors Service upgraded Hilton Hotels Corporation's corporate family rating to Ba1 from Ba2 reflecting a reduction in leverage from a faster than expected pace of asset sales and strong earnings during 2006. Adjusted debt to EBITDAR has improved to around 5.0x from 6.0x in January 2006. =========== F R A N C E =========== ALCATEL-LUCENT SA: Cuts Full Year 2007 Revenue Forecast to Flat --------------------------------------------------------------- Alcatel-Lucent S.A. revised its full year 2007 revenue outlook and confirmed its previous statements regarding synergy targets for the year. Alcatel-Lucent now expects its full year 2007 revenue growth to be flat to slightly up at a constant Euro/US$ exchange rate. Alcatel-Lucent had previously estimated that its revenue would grow in the mid single digits at a constant rate. Currently, Alcatel-Lucent’s revenue for the third quarter 2007 is estimated to grow slightly compared to the second quarter 2007 at a constant Euro/US$ exchange rate. The company’s revenue for the fourth quarter 2007 is still expected to ramp-up strongly over the third quarter 2007. Additionally, the change in revenue mix is expected to negatively impact the profitability of the company, especially in the current quarter. For the third quarter 2007, the operating income (loss) is expected to be around breakeven. This downward revision in the revenue forecast is based on the most recent and updated discussions with some wireless customers in North America. Alcatel-Lucent is now seeing a change in capital spending with those customers in 2007, compared to what it had anticipated. As a result, the company is not seeing the projected volume changes that would have mitigated the ongoing pricing pressures it is experiencing. In other regions and businesses, in particular wireline, enterprise and Asia-Pacific revenue performance continues to be strong. The company continues to execute on its integration plans and is planning to achieve its synergy related pre-tax savings of EUR600 million this year. As the company has previously said for this year, it will not retain its gross margin savings due to competitive market conditions but expects it will retain most of its operating expense savings on a comparable basis. Alcatel-Lucent continues to expect a strong sequential revenue growth in the fourth quarter, driven by IP transformation, broadband deployment and associated services. Patricia Russo, Alcatel-Lucent CEO said, “Given ongoing dynamics in the rapidly changing telecom industry, the company is taking steps to accelerate the execution of its current restructuring program and to implement additional focused cost reduction plans in markets which require further actions to be taken. While the company acknowledges that it is competing in a challenging market environment and executing a complex merger, it remains confident that it has the right combination of people and assets to position the company as a leading player in the industry.” Alcatel-Lucent will provide an update regarding its plans when announcing third quarter earnings on October 31, 2007. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent S.A. -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. * * * As reported on April 13, 2007, Fitch Ratings affirmed Alcatel- Lucent's ratings at Issuer Default 'BB' with a Stable Outlook, senior unsecured 'BB' and Short-term 'F2' and simultaneously withdrawn them. As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. ALCATEL-LUCENT: Adverse Trading Update Cues S&P’s BB- Ratings ------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on international equipment supplier Alcatel-Lucent and related entity Lucent Technologies Inc. to stable from positive. At the same time, the 'BB-' long-term corporate credit ratings on the group were affirmed. The 'B' short-term corporate credit rating on Alcatel-Lucent and 'B-1' short-term rating on Lucent Technologies were also affirmed. The outlook revision follows the group's communication of an adverse update on its business activities and prospects. "Standard & Poor's no longer expects a near-term rating upgrade given the group's downward revision of its revenue growth expectations for 2007 and the resulting detrimental effects on profitability," said Standard & Poor's credit analyst Leandro de Torres Zabala. Alcatel-Lucent now expects revenues in 2007 to be flat to slightly up at a constant euro-U.S. dollar exchange rate. This compares with previous expectations of revenue growth in the mid single digits. As a result, the group will not see the projected volume changes that would have mitigated ongoing pricing pressures, with negative implications for profitability. At the same time, the group has communicated that it continues to execute on its integration plans and that it is planning to achieve synergy-related pretax savings of EUR600 million this year. In light of fierce competition, however, Alcatel-Lucent expects to continue passing on its gross margin savings through lower pricing. As a result, and given the change in revenue mix, the group expects operating income in the third quarter of 2007 to be around breakeven. Given the industry's exacerbated competitive pressures, the group's CEO has announced steps to accelerate the execution of its current restructuring program and to implement additional cost reduction plans in markets that require further action to be taken. The group will provide an update regarding its plans when announcing third-quarter earnings on Oct. 31, 2007. "We expect that the group's 2007 sales will at least be flat compared with 2006 levels and that Alcatel-Lucent will continue to execute its integration plan, achieve its synergy-related pretax savings targets, and maintain its market position with key customers," Mr. de Torres Zabala added. For the outlook to be revised back to positive, Standard & Poor's needs to see the group make successful progress with its global integration plans, stabilize its wireless business in North America, and make further headway in operating profitability and cash flow generation. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent (Euronext Paris and NYSE: ALU) -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end-users. With operations in more than 130 countries, Alcatel-Lucent is a local partner with global reach. The company has the most experienced global services team in the industry, and one of the largest research, technology and innovation organizations in the telecommunications industry. Alcatel-Lucent achieved EUR18.3 billion proforma revenues in 2006. ASPEN TECHNOLOGY: Reports Preliminary Fourth Quarter Results ------------------------------------------------------------ Aspen Technology Inc. has disclosed preliminary financial results for its fiscal fourth quarter 2007 and fiscal year ended June 30, 2007. The company reported record license bookings during the fiscal fourth quarter 2007, with license bookings defined as the total net present value of all license contracts signed in the quarter. License bookings were US$67 million during the fiscal fourth quarter, an increase of approximately 49% compared to US$45 million in the fourth quarter of fiscal 2006. The company reported record fiscal 2007 license bookings of US$200 million, an increase of approximately 23% from US$162 million in fiscal 2006. The company ended the fourth quarter with US$132 million in cash, up US$31 million from US$101 million at the end of the prior quarter. The increase in cash was driven primarily by strong license bookings, which generated installments receivable that were sold for cash during the quarter, and continued focus on managing costs and expenses. In addition, the company received US$5 million of proceeds from exercises of stock options, while it used US$2 million of cash for capital expenditures during the fourth quarter. Mark Fusco, Chief Executive Officer of Aspen Technology, said "We were very pleased with the company's operating performance in the fourth quarter, which was highlighted by robust growth in license bookings that exceeded our expectations and the growth of the market. The fourth quarter capped off the most successful annual operating performance in the history of AspenTech, and our business was solid across each key metric during the fourth quarter - vertical, major geography, product, aspenONE and transactions of all sizes." Mr. Fusco added, "With solid market demand, a differentiated value proposition and industry leading domain expertise, we are optimistic about the company's fundamental outlook as we begin fiscal 2008." The company also announced that it is continuing work on the restatement of previously issued financial statements. The restatement needs to be completed before the company can issue final, complete results for its fiscal fourth quarter and year ended June 30, 2007. On June 11, 2007, the company has announced identified errors in its accounting for sales of installments receivable. The company has reviewed thousands of installments receivable transactions, dating back to fiscal 2003, as part of a process to determine period-end balances for two new balance sheet accounts, a collateral asset for secured borrowings and a secured borrowing liability. Based on the significant amount of work that has been completed over the course of the past three months, the company has updated its estimate of the balances of these two new related balance sheet items, as follows: -- approximately US$230 million as of June 30, 2005 -- approximately US$200 million as of June 30, 2006 -- approximately US$200 million as of June 30, 2007 Brad Miller, Chief Financial Officer of AspenTech, said "The company's finance team and outside financial advisors have been working diligently to complete the restatement and fiscal 2007 year-end financial statements. We are committed to addressing these matters as expeditiously and thoroughly as possible. While we are completing this effort, AspenTech remains focused on customer success and sales of our solutions into end markets that continue to show strong demand." About Aspen Technology Based in Cambridge, Massachusetts, Aspen Technology Inc. (Nasdaq: AZPN) -- http://www.aspentech.com/-- provides software and professional services that help process companies improve efficiency and profitability by enabling them to model, manage and control their operations. The company has locations in Brazil, Malaysia and France. * * * Aspen Technology carries Moody's B2 long-term corporate family rating and Caa1 equity linked rating. Moody's said the outlook is stable. The company carries Standard & Poor's B long-term foreign and local issuer credit ratings, with negative outlook. DELPHI CORP: Gets Nod to File GM Settlement Exhibits Under Seal --------------------------------------------------------------- Delphi Corp. and its debtor-affiliates obtained permission from the U.S. Bankruptcy Court for the Southern District of New York to file certain exhibits to the Master Restructuring Agreement between Delphi Corp. and General Motors Corp. under seal. The MRA Exhibits will remain confidential and will be served on and made available only to: * the U.S. Trustee for the Southern District of New York; * counsel to the Official Committee of Unsecured Creditors; and * other parties agreed to in writing by the Debtors and GM. John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, explains that the MRA Exhibits contain detailed descriptions of sensitive business information and trade terms that will, if publicly disclosed, detrimentally affect the competitiveness of the Debtors and GM, as well as the parties' ability to negotiate the terms of future agreements. Specifically, the MRA Exhibits include schedules of certain assets held by certain of the Debtors' business units, financial projections, purchasing and pricing information, information related to new business opportunities and extensions of existing contracts, information relevant to the marketing of certain of the Debtors' non-core assets, and metrics and procedures for calculating various payment amounts provided for in the MRA. After evaluating whether they could effectively redact the MRA Exhibits, the Debtors and GM concluded that redaction was not appropriate because the amount of redaction required would not permit parties-in-interest to conduct a meaningful review of the Exhibits. In addition, redacted versions of the Exhibits could be misleading. As previously reported, the Debtors and GM have determined, in furtherance of the Joint Plan of Reorganization, to settle various disputes and compromise certain claims as provided by two a Global Settlement Agreement and the MRA. The GSA addresses primarily those matters for which the Debtors and GM have agreed upon resolutions that can be implemented in the short term, Mr. Butler relates. Accordingly, most obligations set forth in the GSA are to be performed upon, or as soon as reasonably practicable after, the occurrence of the Effective Date of the Plan. By contrast, resolution of most of the matters addressed in the MRA will require a significantly longer period that will extend for a number of years after confirmation of the Plan, Mr. Butler adds. The Debtors believe the GSA and the MRA will permit them to implement the Plan with material support and broad cooperation from GM, their largest customer. Likewise, the agreements will allow GM to manage the effects of its largest supplier's transformation on GM's supply chain and operations. GM Settlement As reported in the Troubled Company Reporter on Sept. 7, 2007, pursuant to the Debtors' Plan, subject to Court approval as part of the plan confirmation process, Delphi and GM have entered into comprehensive settlement agreements consisting of a Global Settlement Agreement. Most obligations set forth in the GSA are to be performed upon the occurrence of the Effective Date of the Plan or as soon as reasonably possible after. By contrast, resolution of most of the matters addressed in the MRA will require a significantly longer period that will extend for a number of years after confirmation of the Plan. The GSA is intended to resolve outstanding issues among Delphi and GM that have arisen or may arise before Delphi's emergence from Chapter 11, and will be implemented by Delphi and GM in the short term. The GSA addresses, among other things, commitments by Delphi and GM regarding OPEB and pension obligations, other GM contributions with respect to labor matters, releases, and claims treatment. -- GM will make significant contributions to cover costs associated with certain post-retirement benefits for certain of the company's active and retired hourly employees, including health care and life insurance; -- Delphi will freeze its Hourly Pension Plan as soon as possible following the Effective Date, as provided in the union settlement agreements, and GM's Hourly Pension Plan will become responsible for certain future costs related to Delphi's Hourly Pension Plan; -- Delphi will transfer certain assets and liabilities of its Hourly Pension Plan to the GM Hourly Pension Plan, as set forth in the union term sheets; -- Shortly after the effective date, GM will receive an interest bearing note from Delphi in the amount of US$1.5 billion to be paid within 10 days of its issuance; -- GM will make significant contributions to Delphi to fund various special attrition programs, consistent with the provisions of the union Memorandum of Understanding; -- GM and certain related parties and Delphi and certain related parties will exchange broad, global releases (which will not apply to certain surviving claims as set forth in the GSA); and -- On the Effective Date, subject to certain surviving claims in the GSA and in satisfaction of various GM claims, Delphi will pay GM US$2.7 billion, and the GM Proof of Claim will be settled. The MRA is intended to govern certain aspects of Delphi and GM's commercial relationship following Delphi's emergence from Chapter 11. The MRA addresses, among other things, the scope of GM's existing and future business awards to Delphi and related pricing agreements and sourcing arrangements, GM commitments with respect to reimbursement of specified ongoing labor costs, the disposition of certain Delphi facilities, and the treatment of existing agreements between Delphi and GM. Through the MRA, Delphi and GM have agreed to certain terms and conditions governing, among other things: -- the scope of existing business awards, related pricing agreements, and extensions of certain existing supply agreements; -- GM's ability to move production to alternative suppliers; and -- Reorganized Delphi's rights to bid and qualify for new business awards. a) GM will make significant, ongoing contributions to Delphi and Reorganized Delphi to reimburse the company for labor costs in excess of US$26 per hour at specified manufacturing facilities; b) GM and Delphi have agreed to certain terms and conditions concerning the sale of certain of its non-core businesses; c) GM and Delphi have agreed to certain additional terms and conditions if certain of its businesses and facilities are not sold or wound down by certain future dates; and d) GM and Delphi have agreed to the treatment of certain contracts between Delphi and GM arising from Delphi's separation from GM and other contracts between Delphi and GM. About Delphi Headquartered in Troy, Mich., Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. The Court has set a hearing on October 3 to consider the adequacy of the Disclosure Statement. (Delphi Bankruptcy News, Issue No. 84 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). INNOVATIVE COMM: Stan Springel Appointed as Chapter 11 Trustee -------------------------------------------------------------- The Honorable Judith K. Fitzgerald of the U.S. Bankruptcy Court for the Western District of Pennsylvania appointed Stan Springel as the chapter 11 trustee overseeing Innovative Communication Corporation's estate. Mr. Springel, a corporate restructuring specialist who had been given control of parent companies Innovative Communication Corporation, LLC, and Emerging Communications, Inc. on March 15, 2007, requested and gained control over ICC. ICC is a holding company for a number of media and telecommunications ventures, including Innovative Telephone (formerly the Virgin Islands Telephone Company or VITELCO), the Virgin Islands Daily News, and the St. Thomas and St. Croix cable companies. ICC and its parent companies have been engaged in protracted bankruptcy proceedings with National Rural Utilities Cooperative Finance Corporation and its affiliate Rural Telephone Finance Cooperative, which as of May 31, 2007, had US$493 million in credit extended to ICC and an unsatisfied court judgment in excess of US$524 million against ICC. All loans have been on non-accrual status since Feb. 1, 2005. ICC has not made debt service payments to RTFC since June 2005. RTFC is the primary secured lender to ICC. The Court also cited the failure of ICC to honor pension contribution obligations resulting in government liens on the subsidiaries' property. RTFC also holds an unsatisfied court judgment of US$100 million against Jeffery Prosser, who has been in control of ICC. "The Trustee is authorized and directed to vote ECI's shares of stock in Innovative Communication Corporation, a wholly-owned, non-debtor subsidiary of ECI, to remove the current board of directors and officers of ICC if necessary, to take related corporate action to effectuate the Trustee's control over New ICC in order to facilitate a transaction for the refinancing or sale of the Debtors and their Operating Subsidiaries and, if necessary, to file a voluntary bankruptcy petition on behalf of ICC," the court order states. Mr. Prosser has filed a notice of appeal of the order. "This is a positive development in this protracted proceeding," CFC and RTFC CFO Steven Lilly, said. "We very much appreciate the Court's ruling, which moves us toward the resolution of this troubled credit issue." National Rural Utilities Cooperative Finance Corporation is a not-for-profit finance cooperative that serves the nation's rural utility systems, the majority of which are electric cooperatives and their subsidiaries. With more than US$18 billion in assets, CFC provides its member-owners with an assured source of low-cost capital and state-of-the-art financial products and services. Rural Telephone Finance Cooperative is a not-for-profit finance cooperative that serves the financial needs of the rural telecommunications industry. RTFC has approximately US$2 billion in credit outstanding to its rural telecommunications members and their affiliates and is a managed affiliate of CFC. Both CFC and RTFC are headquartered in Herndon, Virginia. Based in Christiansted, St. Croix, U.S. Virgin Islands, Innovative Communication Corporation is telecommunications and media company with eextensive holdings throughout the Caribbean basin. The company's operations are in Belize, British Virgin Islands, Guadeloupe, Martinique, Saint-Martin, Sint Maarten, U.S. Virgin Islands and France and include local, long distance and cellular telephone companies, Internet access providers, cable television companies, business systems, and The Virgin Islands Daily News, a Pulitzer Prize-winning newspaper. On Feb. 10, 2006, creditors Greenlight Capital Qualified, L.P., Greenlight Capital, L.P., and Greenlight Capital Offshore, Ltd., filed involuntary chapter 11 petition againsts Innovative Communication Company LLC and Emerging Communications, Inc., and Jeffrey J. Prosser, the company's principal (Bankr. D. Del. Case Nos. 06-10133 through 06-10135). The Greenlight creditors disclosed US$18,780,614 in total claims. On July 31, 2006, Innovative LLC, Emerging, and Mr. Prosser, filed voluntary chapter 11 petitions (Bankr. D. V.I. Case Nos. 06-30007 through 06-30009). Pursuant to Rule 1003-1 of the Local Bankruptcy Rules of the District Court of the Virgin Islands, Bankruptcy Division, Mr. Prosser, and Bobby Lubana, were designated as the individuals who are the principal operating officers of the alleged debtor. On Dec. 14, 2006, the Delaware Bankruptcy Court entered an order transferring the venue of the involuntary bankruptcy cases transferring to the U.S. District Court for the District of the Virgin Islands, Bankruptcy Division. On July 5, 2007, the Greenlight creditors filed an involuntary chapter 11 petition against Innovative Communication Corporation (Bankr. D. V.I. Case No. 07-30012). The creditors disclosed total aggregate claims of US$56,341,843. Matthew J. Duensing, Esq., and Richard H. Dollison, Esq., at Stryker, Duensing, Casner & Dollison, and Matthew P. Ward, Esq., at Skadden Arps Slate Meagher & Flom LLP, represent the creditors. Stan Springel of Alvarez & Marsal, the Court-appointed chapter 11 trustee, is represented by Andrew Kamensky, Esq., Hunton & Williams. VERINT SYSTEMS: Victor DeMarines Joins Board of Directors --------------------------------------------------------- Verint Systems Inc. has elected Victor A. DeMarines as its new non-executive Chairman of Verint's Board of Directors. Mr. DeMarines has served as an independent director and chairman of Verint's Audit Committee since 2002. Mr. DeMarines will also serve as chairman of Verint's newly created Governance and Nominating Committee. Upon his election, Mr. DeMarines said, "As an independent director, I am happy to take on this new role. It has been a pleasure watching Verint grow over the last five years and I believe these changes to the board will help the company focus on its long-term strategy." Verint also announced that: -- Larry Myers has been elected as the new chairman of Verint's Audit Committee, replacing Mr. DeMarines. Mr. Myers has served an independent director of Verint since 2002. -- Howard Safir will continue to serve as the chairman of Verint's Compensation and Stock Option Committees. Mr. Safir has served as an independent director of Verint since 2002. -- Lauren Wright and Shefali Shah from Comverse have joined Verint's Board of Directors, increasing the Board to 11 members, 5 of whom are Comverse-affiliated Verint directors. About Verint Systems Headquartered in Melville, New York, Verint Systems Inc. (VRNT.PK) -- http://www.verint.com/-- is a provider of analytic software-based solutions for security and business intelligence. Verint software, which is used by over 1,000 organizations in over 50 countries worldwide, generates actionable intelligence through the collection, retention and analysis of voice, fax, video, email, Internet and data transmissions from multiple communications networks. Verint has global offices in France, Brazil and and India. * * * As reported in the Troubled Company Reporter on April 24, 2007, Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Verint Systems Inc. At the same time, we assigned our 'B' bank loan rating, and '3' recovery rating to the company's proposed US$675 million first-lien credit facility, indicating that lenders can expect meaningful (50%- 80%) recovery of principal in the event of payment default," said Standard & Poor's credit analyst David Tsui. S&P said the outlook is developing. ============= G E R M A N Y ============= ASAT HOLDINGS: Pays US$6.9 Million Interest on 9.25% Sr. Notes -------------------------------------------------------------- ASAT Holdings Limited paid US$6.9 million in interest, plus accumulated penalty interest, on its 9.25% Senior Notes due 2011, within the applicable grace period. The aggregate principal amount of the Notes is US$150 million. Headquartered in Pleasanton, California, ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/-- is a provider of semiconductor package design, assembly and test services. With 18 years of experience, the company offers a definitive selection of semiconductor packages and world-class manufacturing lines. ASAT's advanced package portfolio includes standard and high thermal performance ball grid arrays, leadless plastic chip carriers, thin array plastic packages, system-in- package and flip chip. ASAT was the first company to develop moisture sensitive level one capability on standard leaded products. The company has operations in the United States, Hong Kong, China and Germany. * * * ASAT Holdings Limited's consolidated balance sheet at April 30, 2007, showed US$135.1 million in total assets, US$217.7 million in total liabilities, and US$5.7 million in series A redeemable convertible preferred shares, resulting in a US$88.3 million total stockholders' deficit. ASAT HOLDINGS: Interest Payment Cues S&P to Lift Ratings to CCC- ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on ASAT Holdings Ltd. to 'CCC-' from 'D' following the company's announcement on Aug. 28, 2007, that it had paid the overdue interest on US$150 million 9.25% senior notes due 2011. The outlook is negative. At the same time, Standard & Poor's raised the issue rating on the notes to 'CCC-' from 'D'. This rating level indicates that the notes are vulnerable to nonpayment. The notes were issued by New ASAT (Finance) Ltd. and are guaranteed by ASAT. ASAT's cash position is extremely weak, based on the company's financial disclosures as at April 30, 2007, with only US$7.3 million in unrestricted cash. The company has paid its US$6.9 million semi-annual interest payment on the senior notes and its accumulated penalty interest. "ASAT's ability to make its next interest payment is highly dependent on its ability to secure new financing arrangements," said Standard & Poor's credit analyst Jacphanie Cheung. "The negative outlook reflects the company's very weak cash position, heavy interest burden, persistent operating losses, and limited financial flexibility." Bondholders have agreed to waive or relax certain covenants. For example, they have lifted the restrictions on the value of assets that its subsidiary in China, ASAT Semiconductor (Dongguan) Ltd., may hold. The new arrangements could give the company added flexibility to secure financing from banks in China. However, under a liquidation scenario, claims on the current senior notes could become subordinated to obligations (secured or unsecured) incurred by the company's operating subsidiaries in China. The issue rating could be lowered if subsidiary borrowings exceed 15% of ASAT's consolidated assets. ASAT is a small operator in the highly fragmented and competitive semiconductor sector. Standard & Poor's has very limited access to the company's management and financial information. The rating is based on publicly available information. Headquartered in Pleasanton, California, ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/-- is a provider of semiconductor package design, assembly and test services. With 18 years of experience, the company offers a definitive selection of semiconductor packages and world-class manufacturing lines. ASAT's advanced package portfolio includes standard and high thermal performance ball grid arrays, leadless plastic chip carriers, thin array plastic packages, system-in- package and flip chip. ASAT was the first company to develop moisture sensitive level one capability on standard leaded products. The company has operations in the United States, Hong Kong, China, and Germany. AUDIO-VIDEO-SERVICE: Creditors Must File Claims by October 8 ------------------------------------------------------------ Creditors of Audio-Video-Service F & G GmbH have until Oct. 8 to register their claims with court-appointed insolvency manager Rolf Otto Neukirchen. Creditors and other interested parties are encouraged to attend the meeting at 1:40 p.m. on Oct. 24, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Essen Meeting Hall 293 Second Floor Zweigertstr. 52 45130 Essen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Rolf Otto Neukirchen Zweigertstr. 28-30 45130 Essen Germany The District Court of Essen opened bankruptcy proceedings against Audio-Video-Service F & G GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Audio-Video-Service F & G GmbH Kleine Hammerstrasse 13 45326 Essen Germany Attn: Hermann-Josef Fenke, Manager Ofenbank 21 45279 Essen Germany BACKWAREN FINGERHUT: Claims Registration Period Ends Oct. 15 ------------------------------------------------------------ Creditors of Backwaren Fingerhut GmbH have until Oct. 15 to register their claims with court-appointed insolvency manager Dr. Sebastian Henneke. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 14, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duisburg Hall C315 Kardinal-Galen-Strasse 124-132 47058 Duisburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Sebastian Henneke Muelheimer Str. 100 47057 Duisburg Germany The District Court of Duisburg opened bankruptcy proceedings against Backwaren Fingerhut GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Backwaren Fingerhut GmbH Muelheimer Str. 86 45145 Essen Germany Attn: Jutta Fingerhut, Manager Wolfsbankstr. 42 45355 Essen Germany BIB BAU- UND INDUSTRIEBEDARF: Claims Registration Ends October 4 ---------------------------------------------------------------- Creditors of BIB Bau- und Industriebedarf GmbH have until Oct. 4 to register their claims with court-appointed insolvency manager Dr. Andreas Roepke. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Oct. 24, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duisburg Hall C207 Second Floor Kardinal-Galen-Strasse 124-132 47058 Duisburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Andreas Roepke Muelheimer Strasse 100 47057 Duisburg Germany The District Court of Duisburg opened bankruptcy proceedings against BIB Bau- und Industriebedarf GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BIB Bau- und Industriebedarf GmbH Lanterstr.34 c 46539 Dinslaken Germany Attn: Joachim Zimmermann, Manager Bruederstr.57 46145 Oberhausen Germany BIO REITER: Claims Registration Period Ends Oct. 13 --------------------------------------------------- Creditors of Bio Reiter GmbH have until Oct. 13 to register their claims with court-appointed insolvency manager Dr. Bruno Kuebler. Creditors and other interested parties are encouraged to attend the meeting at 11:10 a.m. on Nov. 13, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Room 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Bruno Kuebler Konrad-Zuse-Platz 1 81829 Muenchen Germany Tel: 99299-0 Fax: 99299-299 Website: www.kuebler-gbr.de The District Court of Munich opened bankruptcy proceedings against Bio Reiter GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bio Reiter GmbH Attn: Dr. Otto Wuerl, Manager Parsdorfer Weg 10 85551 Kirchheim Germany CATTO ANIMATION: Claims Registration Ends Sept. 28 -------------------------------------------------- Creditors of Catto Animation Deutschland GmbH have until Sept. 28 to register their claims with court-appointed insolvency manager Gudrun Hopf. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Oct. 30, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Hall 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Gudrun Hopf Hilblestr. 7 80636 Munich Germany Tel: 089/183690 Fax: 089/184160 The District Court of Munich opened bankruptcy proceedings against Catto Animation Deutschland GmbH on Aug. 29. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Catto Animation Deutschland GmbH Lenbachplatz 7 80333 Munich Germany CHRYSLER LLC: Health Fund Remains Main Sticking Point in Talks -------------------------------------------------------------- Detroit's “big three” automakers and the United Auto Workers are continuing to hammer out vital points concerning the biggest issue in its contract negotiations –- the creation of a multibillion-dollar, union-controlled health care trust fund, Jeffrey Mccracken writes for the Wall Street Journal, citing people familiar with the matter. According to the report, sources close to the matter claim that the parties involved have largely come to agreement on issues such as health care inflation and actuarial figures about the 721,000 active workers, retirees and spouses covered by the auto makers. The trust fund is expected to cut about US$95 billion from the carmakers' retiree costs. The three automakers are believed to be pushing to finance the health care fund at no more than 70 cents on the dollar, which would create a trust fund in excess of US$60 billion, making it one of the largest investment funds in the country, WSJ states. However, a huge gap remains between funding proposed by the auto makers and the level discussed by the UAW, described as "still well into the several-billion-dollars range" by a person familiar with the talks, although the two have narrowed the gap over the past week, WSJ relates. The UAW is amenable to creating a trust fund for retiree health-care benefits as long as all of the parties involved can reach an agreement on funding terms. While the contract negotiations continue, the UAW has helped GM, Ford and Chrysler in their respective turnaround efforts by reducing the number of workers eligible for "jobs bank" programs through buyout programs that have cut over 55,000 factory jobs, Reuters reports, quoting UAW president Ron Gettelfinger. Under the jobs bank provision, workers get paid nearly their full salaries if they are laid off. As part of the jobs bank, workers can do volunteer community work or go to school or just report to the plant, Jui Chakravorty writes for Reuters. Mr. Gettelfinger had earlier said that the jobs bank was "not an issue" but after the UAW gave up union jobs, he would not go into these talks "in a concessionary mode." The jobs bank benefit is part of the concerns to be discussed in the ongoing talks, Reuters says. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. Chrysler LLC is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. * * * The TCR-Europe reported on Aug. 8, 2007, that Moody's Investors Service has affirmed Chrysler Automotive LLC's B3 Corporate Family Rating, and the Caa1 (LGD4, 66) rating of the company's US$2 billion senior secured, second lien term loan in connection with Monday's closing of Daimler Chrysler AG's sale of a majority interest of Chrysler Group to Cerberus Capital Management LLC. DIERKS GMBH: Claims Registration Ends Sept. 28 ---------------------------------------------- Creditors of Dierks GmbH & Co. Grundstuecks KG have until Sept. 28 to register their claims with court-appointed insolvency manager Dr. Steffen Koch. Creditors and other interested parties are encouraged to attend the meeting at 10:10 a.m. on Oct. 22, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Walsrode Hall 130 Lange Strasse 29-33 29664 Walsrode Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Steffen Koch Albert-Einstein-Ring 11 22761 Hamburg Germany Tel: (040) 89956-0 Fax: (040) 89956-10 The District Court of Walsrode opened bankruptcy proceedings against Dierks GmbH & Co. Grundstuecks KG on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Dierks GmbH & Co. Grundstuecks KG Westerwalseder Strasse 6 27386 Kirchwalsede Germany EMA-PLAY SPIELHALLEN: Claims Registration Period Ends Oct. 15 ------------------------------------------------------------- Creditors of "ema-play" Spielhallen GmbH have until Oct. 15 to register their claims with court-appointed insolvency manager Hans-Albrecht Brauer. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Nov. 22, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Wittlich Hall 3 Kurfuerstenstrasse 63 54516 Wittlich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hans-Albrecht Brauer Jahnstr. 1 54550 Daun Germany Tel: 06592/985604 Fax: 06592/7344 The District Court of Wittlich opened bankruptcy proceedings against "ema-play" Spielhallen GmbH on Sept. 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: "ema-play" Spielhallen GmbH Raiffeisenstr. 10 54568 Gerolstein Germany Attn: Elmar Stephan May, Manager Pestalozzistr. 23 95368 Gerolstein Germany GRUNDSTUECKSGESELLSCHAFT DIERKS: Claims Filing Ends Sept. 28 ------------------------------------------------------------ Creditors of Grundstuecksgesellschaft Dierks GmbH & Co. KG have until Sept. 28 to register their claims with court-appointed insolvency manager Dr. Steffen Koch. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on Oct. 22, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Walsrode Hall 130 Lange Strasse 29-33 29664 Walsrode Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Steffen Koch Albert-Einstein-Ring 11 22761 Hamburg Germany Tel: (040) 89956-0 Fax: (040) 89956-10 The District Court of Walsrode opened bankruptcy proceedings against Grundstuecksgesellschaft Dierks GmbH & Co. KG on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Grundstuecksgesellschaft Dierks GmbH & Co. KG Konrad-Adenauer-Allee 4 06366 Koethen Germany GUSTAV BERGMANN: Claims Registration Ends October 5 --------------------------------------------------- Creditors of Gustav Bergmann Moebel GmbH & Co. KG have until Oct. 5 to register their claims with court-appointed insolvency manager Dr. Per Hendrik Heerma. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Oct. 22, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Detmold Meeting Hall 12 Ground Floor Gerichtsstr. 6 32756 Detmold Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Per Hendrik Heerma Jungfernstieg 50 20354 Hamburg Germany The District Court of Detmold opened bankruptcy proceedings against Gustav Bergmann Moebel GmbH & Co. KG on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Gustav Bergmann Moebel GmbH & Co. KG Attn: Stefan Bergmann and Gerd Meurer, Managers Haferbachstr. 9-15 32791 Lage Germany HELLHAUS GMBH: Claims Registration Ends Sept. 28 ------------------------------------------------ Creditors of Hellhaus GmbH have until Sept. 28 to register their claims with court-appointed insolvency manager Dr. Hans von Gleichenstein. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on Oct. 30, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Hall 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Hans von Gleichenstein Rottmannstr. 11 a 80333 Munich Germany Tel: 5427300 The District Court of Munich opened bankruptcy proceedings against Hellhaus GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hellhaus GmbH Schwanthalerstr. 31 80336 Munich Germany HERTH GASTRONOMIE: Claims Registration Ends October 1 ----------------------------------------------------- Creditors of Herth Gastronomie-Betriebsgesellschaft mbH have until Oct. 1 to register their claims with court-appointed insolvency manager Frank Weber. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 12, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Mannheim Hall 232 Second Floor Schloss 68149 Mannheim Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Frank Weber Theodor Heuss-Anlage 12 68165 Mannheim Germany Tel: 0621/422900 The District Court of Mannheim opened bankruptcy proceedings against Herth Gastronomie-Betriebsgesellschaft mbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Herth Gastronomie-Betriebsgesellschaft mbH Attn: Isabelle Herth, Manager Friedrichsring 4 68161 Mannheim Germany HWZ HAUSWIRTSCHAFTSDIENSTE: Creditors Must File Claims October 5 ---------------------------------------------------------------- Creditors of HWZ Hauswirtschaftsdienste GmbH Mandelbachtal have until Oct. 5 to register their claims with court-appointed insolvency manager Dominica Wolff. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 2, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Saarbruecken Area Hall 13 First Floor Vopeliusstrasse 2 66280 Sulzbach Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dominica Wolff Lilienthalstrasse 9 66740 Saarlouis Germany Tel: (06831) 173 241 Fax: (06831) 173 220 The District Court of Saarbruecken opened bankruptcy proceedings against HWZ Hauswirtschaftsdienste GmbH Mandelbachtal on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HWZ Hauswirtschaftsdienste GmbH Mandelbachtal Kohlenstr. 66 66386 St Ingbert Germany MEGAFIT GMBH: Claims Registration Period Ends Oct. 12 ----------------------------------------------------- Creditors of MegaFit GmbH have until Oct. 12 to register their claims with court-appointed insolvency manager Hans-Ulrich Kloz. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 13, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hanau Area E09 Engelhardstrasse 21 63450 Hanau Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hans-Ulrich Kloz Gerichtsfach 75 Kurt-Blaum-Platz 1 D 63450 Hanau Germany Tel: 06181/93210 Fax: 932120 E-mail: info@kloz-hahn.de The District Court of Hanau opened bankruptcy proceedings against MegaFit GmbH on Aug. 31. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MegaFit GmbH Philipp-Reis-Str. 9 63486 Bruchkoebel Germany Attn: Gustav Mueller, Manager Hauptstr. 14 63477 Maintal Germany NEUMANN VERTRIEB: Creditors Must File Claims by October 8 --------------------------------------------------------- Creditors of Neumann Vertrieb & Service GmbH have until Oct. 8 to register their claims with court-appointed insolvency manager Arne Brumm. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on Nov. 8, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Magdeburg Hall D Insolvency Department Liebknechtstrasse 65-91 39110 Magdeburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Arne Brumm Koenigstrasse 17 39116 Magdeburg Germany Tel: 0391/ 5971240 Fax: 0391/ 5971241 The District Court of Magdeburg opened bankruptcy proceedings against Neumann Vertrieb & Service GmbH on Sept. 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Neumann Vertrieb & Service GmbH Calbenser Weg 10 39240 Loedderitz Germany SCHWICHTENBERG FOOD: Claims Registration Period Ends Oct. 26 ------------------------------------------------------------ Creditors of Schwichtenberg Food & More GmbH have until Oct. 26 to register their claims with court-appointed insolvency manager Michael W. Kuleisa. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Nov. 23, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael W. Kuleisa Speersort 4-6 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Schwichtenberg Food & More GmbH on Aug. 31. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Schwichtenberg Food & More GmbH Attn: Dieter Otto Albert Schwichtenberg, Manager Hovestrasse 72 20539 Hamburg Germany TETZ BACKES: Claims Registration Ends October 2 ----------------------------------------------- Creditors of Tetz Backes GmbH have until Oct. 2 to register their claims with court-appointed insolvency manager Winfried Bongartz. Creditors and other interested parties are encouraged to attend the meeting at 8:00 a.m. on Oct. 17, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Moenchengladbach Meeting Hall A 14 Ground Floor Hohenzollernstr. 157 41061 Moenchengladbach Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Winfried Bongartz Brucknerallee 6 41236 Moenchengladbach Germany Tel: 02166/6189898 Fax: +4921666189888 The District Court of Moenchengladbach opened bankruptcy proceedings against Tetz Backes GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Tetz Backes GmbH Attn: Max Tetz, Manager Konstantinstrasse 117 41238 Moenchengladbach Germany TEXTILE FINISHING: Claims Registration Period Ends Oct. 26 ---------------------------------------------------------- Creditors of Textile Finishing Sparneck GmbH have until Oct. 26 to register their claims with court-appointed insolvency manager Bernd Schneiderbanger. Creditors and other interested parties are encouraged to attend the meeting at 1:10 p.m. on Nov. 28, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hof Meeting Hall 012 Ground Floor Berliner Platz 1 95030 Hof Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Bernd Schneiderbanger Kreuzsteinstrasse 41 95028 Hof Germany Tel: 09281/71550 Fax: 09281/715555 The District Court of Hof opened bankruptcy proceedings against Textile Finishing Sparneck GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Textile Finishing Sparneck GmbH Muenchberger Str. 57 95234 Sparneck Germany TOP FARBBILDDISCOUNT: Claims Registration Period Ends Oct. 26 ------------------------------------------------------------- Creditors of Top Farbbilddiscount GmbH have until Oct. 26 to register their claims with court-appointed insolvency manager Joerg Bornheimer. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Nov. 20, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Joerg Bornheimer Sporergasse 7 50667 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against Top Farbbilddiscount GmbH on Aug. 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Top Farbbilddiscount GmbH Koelner Str. 35 51379 Leverkusen Germany WAGNER WERTPAPIERHANDELSHAUS: Claims Registration Ends Oct. 29 -------------------------------------------------------------- Creditors of Wagner Wertpapierhandelshaus GmbH have until Oct. 29 to register their claims with court-appointed insolvency manager Michael W. Kuleisa. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Nov. 29, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael W. Kuleisa Speersort 4-6 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Wagner Wertpapierhandelshaus GmbH on Aug. 31. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Wagner Wertpapierhandelshaus GmbH Attn: Uwe Eilers, Manager Esplanade 6 20354 Hamburg Germany =========== G R E E C E =========== EASTMAN KODAK: S&P Holds B+ Rating and Removes Negative Watch ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Eastman Kodak Co., and removed the ratings from CreditWatch, where they had been placed with negative implications on Aug. 2, 2006. The outlook is negative. At the same time, S&P raised the ratings on the company's US$1 billion senior secured revolving credit facility to 'BB,' two notches above the corporate credit rating, from 'B+', and revised the recovery rating to '1,' reflecting the expectation of very high (90%-100%) recovery in the event of a payment default, from '2'. The bank loan and recovery rating revision follows an analysis of the collateral pledged to the remaining US$1 billion revolving credit facility. "We have affirmed the ratings," said Standard & Poor's credit analyst Tulip Lim, "based on our comfort that still-meaningful cash balances provided by the sale of the Health Group support intermediate-term business reinvestment and liquidity." The negative outlook conveys our continued concerns regarding the overall business, the likelihood of success with respect to management's digital business strategy, and uncertainty that substantial restructuring involving cash payments will soon be over. Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE: EK)-- http://www.kodak.com/-- develops, manufactures, and markets digital and traditional imaging products, services, and solutions to consumers, businesses, the graphic communications market, the entertainment industry, professionals, healthcare providers, and other customers. The company has operations in Argentina, Chile, Denmark, Greece, Jordan, Yemen, Australia, China among others. ============= H U N G A R Y ============= SUN MICROSYSTEMS: Inks Deal to Acquire Majority of Cluster File --------------------------------------------------------------- Sun Microsystems Inc. has executed a definitive agreement pursuant to which Sun will acquire the majority of Cluster File Systems Inc.'s intellectual property and business assets, including the Lustre File System. By acquiring Cluster File Systems Inc., Sun intends to add support for the Solaris (TM) Operating System on Lustre and plans to continue enhancing Lustre on Linux and Solaris OS across multi vendor hardware platforms. Sun also plans to deliver Lustre servers on top of Sun's open source Solaris ZFS solution, which is one of the growing storage virtualization technologies in the marketplace. The agreement further extends Sun's momentum in open source and Solaris and complements the company's current direction to provide the industry's most complete end-to-end High Performance Computing storage solution. "This acquisition, coupled with the recent statement of the Sun Constellation System, the most open petascale capable HPC architecture in the industry, shows our long-term commitment to the open source community and leadership in HPC," John Fowler, executive vice president, Systems Group, Sun Microsystems Inc., said. "Adding the Lustre technology to our already broad and innovative product line-up will strengthen our portfolio and enable Sun and our partners to offer customers an even more complete and open HPC solution." "Lustre provides network centric scalability for storage that is well matched with the complete and open Sun Constellation System architecture for petascale levels of performance," says Peter Braam, CEO, Cluster File System Inc. "This is a clean and extremely scalable approach to provide high bandwidth and low latency access to large amounts of data for HPC applications." "Our team is tremendously excited about joining Sun and furthering the mission of extreme scale computing," Mr. Braam added. "We have already worked together to deliver several large clusters, for example the fastest supercomputer in Asia at Tokyo Tech and we're now in the process of installing a 500+ TeraFlop and 1.7 PetaByte cluster at Texas Advanced Computing Center." The transaction is subject to customary closing conditions and is expected to be completed in the beginning of Sun's second fiscal quarter, beginning Oct. 1, 2007. The terms of the deal were not disclosed as the transaction is immaterial to Sun's earnings per share. About Cluster File Systems Inc. Headquartered in Boulder, Colorado, Cluster File Systems Inc. -- http://www.clusterfs.com/-- is into high-performance, scalable cluster file system technology. Experience, insights, and engineering have enabled CFS to surpass the scalability limits of modern computing. The company's Lustre File System powers clusters with ten of thousands of nodes and petabytes of data, delivering parallel I/O and metadata throughput on many of the Linux-based supercomputers. CFS provides technical support, training, and engineering services, and is actively working with storage and cluster vendors to develop the next generation of intelligent storage devices. The Lustre File System for Linux is open source software developed and maintained by CFS. About Sun Microsystems Inc. Headquartered in Santa Clara, California, Sun Microsystems Inc. (NASDAQ: SUNW) -- http://www.sun.com/-- provides network computing infrastructure solutions that include computer systems, data management, support services and client solutions and educational services. It sells networking solutions, including products and services, in most major markets worldwide through a combination of direct and indirect channels. Sun Microsystems conducts business in 100 countries around the globe, including Brazil, Argentina, India, Hungary, United Kingdom, among others. * * * Sun Microsystems Inc. carries Moody's "Ba1" probability of default and long-term corporate family ratings with a stable outlook. The ratings were placed on Sept. 22, 2006, and Sept. 22, 2005, respectively. Sun Microsystems also carries Standard & Poor's "BB+" long-term foreign and local issuer credit ratings, which were placed on March 5, 2004, with a stable outlook. ============= I R E L A N D ============= STRUCTURED CREDIT: Irish Court Appoints Restructuring Examiner -------------------------------------------------------------- Justice Mary Finlay Geoghegan of the High Court of Ireland has appointed an examiner to oversee Structured Credit's restructuring proceedings, Eamon Quinn writes for the International Herald Tribune. The ruling endorses the company's request to restructure rather than liquidate as the court believes Structured Credit have a chance to survive if it could raise US$125 million from shareholders, IHT relates. As reported in the TCR-Europe on Aug. 21, 2007, Nomura International plc, claimed more than EUR48 million in debts against the firm, which prompted Structured Credit to seek creditor protection. SCC's shareholders have pledged to invest US$125 million to facilitate the company's restructuring plan. Headquartered in Dublin, Ireland, Structured Credit Company -- http://www.structuredcredit.com/-- underwrites a wide variety of structured credit products that provide credit risk transfer services to leading financial institutions. The company has subsidiaries in New York and London. SCC went into provisional liquidation on Aug. 17, 2007, with debts amounting to EUR259.5 million (US$350 million). It is the first Irish company to collapse as a direct result of the volatility in global markets and the crisis in the U.S. mortgage market. The Irish court later revoked the liquidation ruling and named an interim examiner to explore restructuring as an option. W.R. GRACE: Andrew Bonham to Lead Construction Products Biz Unit ---------------------------------------------------------------- W.R. Grace & Co. has elected Andrew Bonham as its Vice President and named President of its Construction Products business unit. Mr. Bonham joined Grace in 2005 as vice president and general manager of Grace Construction Products European operations, headquartered in Brussels, Belgium. Prior to joining Grace, Mr. Bonham was president of Invensys Controls-America. He also held positions of increasing responsibility at General Electric and Honeywell before joining Invensys Controls. He graduated from Virginia Polytechnic Institute with a degree in Mechanical Engineering and earned an MBA at Averett University. "Andrew has done a terrific job at Grace leading its construction business in Europe, the Middle East and India," said Fred Festa, Grace President & CEO. "He is a proven leader, highly energetic and possesses a strong commitment to his customers. I am confident that he will continue to grow our construction business around the world and reinforce our reputation as the leading innovator in specialty construction products." Grace Construction Products is an approximately US$1 billion global business with facilities, sales and technical services support in more than 25 countries. Its principal products include specialty admixtures for the cement and concrete industry, and waterproofing, residential building materials, and fire protection products for the construction industry. It is headquartered in Cambridge, Massachusetts. About W.R. Grace Headquartered in Columbia, Md., W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally, including Argentina, Australia and Ireland. The Company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). James H.M. Sprayregen, Esq., at Kirkland & Ellis, and Laura Davis Jones, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub, P.C., represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan LLP represents the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Anderson Kill & Olick, P.C., represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Martin W. Dies, III, Esq., at Dies & Hile L.L.P., and C. Alan Runyan, Esq., at Speights & Runyan,to represent it. Lexecon, LLP, provided asbestos claims consulting services to the Official Committee of Equity Security Holders. The Debtors' filed their Chapter 11 Plan and Disclosure Statement on Nov. 13, 2004. On Jan. 13, 2005, they filed an Amended Plan and Disclosure Statement. The hearing to consider the adequacy of the Debtors' Disclosure Statement began on Jan. 21, 2005. The Debtors' exclusive period to file a chapter 11 plan expired on July 23, 2007. At Dec. 31, 2006, the W.R. Grace's balance sheet showed total assets of US$3,620,400,000 and total debts of US$4,189,100,000. ========= I T A L Y ========= PARMALAT SPA: Earns EUR244.3 Million for First Half 2007 -------------------------------------------------------- The Parmalat Group posted EUR244.3 million in net profit on EUR1.81 billion in net revenues for the first half ended June 30, 2007, compared with EUR17 million in net profit on EUR1.76 billion in net revenues for the same period ended June 30, 2006. The Group’s net financial position improved significantly during the first half of 2007, with the balance moving from indebtedness of EUR170 million to net financial assets totaling EUR58.9 million, for a net gain of EUR228.9 million compared with Dec. 31, 2006. These developments account for most of this improvement: -- the cash flow from operations, net of changes in operating working capital and after capital expenditures and income tax payments, amounted to EUR39.1 million; -- cash from litigation settlements totaled EUR237.4 million, which is the net result of legal costs amounting to EUR40.9 million (related both to 2006 and 2007 years) and proceeds of EUR278.3 million generated by settlements reached during the first half of 2007; -- cash flow from non-recurring transactions totaled EUR7.1 million. This amount is mainly the net result of proceeds generated by the disposal of non- strategic non-current assets (EUR22.8 million), less outlays of EUR11.2 million for acquisitions of equity investments (including EUR8.1 million paid by Parmalat S.p.A. to buy back the interests held by minority shareholders in two subsidiaries in Russia and Romania); and -- the cash flow from financial transactions reflects net financial income of EUR5.3 million, dividend payments totaling EUR43.4 million and proceeds of EUR7.0 million generated by the exercise of warrants. Sundry items totaled EUR23.6 million net. Events occurring after June 30, 2007 that had a material impact on the Group’s net financial position included the collection of EUR187.8 million generated by the sale of the Spanish operations on July 4, 2007, and the collection of EUR28.7 million generated by the sale of the business operations of Boschi Luigi & Figli S.p.A. on July 2, 2007. Outlook for the Balance of 2007 The outlook results for the first half of 2007 were in line with expectations, despite a less than positive performance by the Venezuelan operations, confirming that the growth and consolidation trend enjoyed by the Parmalat Group is continuing in terms both of revenues and profitability of EBITDA. Targets for growth are in line with expectations, despite the continuous increase in the price of raw milk (both powdered and liquid), in part offset by an adjustment in pricing policy excluding the delta perimeter of Boschi and Spain of around EUR15 million, and the Venezuela effect of around EUR7 million. Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than USUS$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. TRW AUTOMOTIVE: Brings Integrated Safety to Vehicle Markets ----------------------------------------------------------- TRW Automotive Holdings Corp. is demonstrating its success in integrated safety systems by working closely with vehicle manufacturers to bring the benefits of integrated safety technologies to end consumers across a range of vehicle applications. John C. Plant, president and chief executive officer, TRW Automotive said: "TRW's integrated safety concept recognizes that the company can help to provide enhanced safety benefits for drivers and passengers through combining active and passive systems using environmental sensors. Over the previous two years, we've collaborated with vehicle manufacturers to help develop integrated safety functions with an eye toward bringing the advantages to wider vehicle markets such as mid-size to smaller cars." TRW is providing the platform for a range of integrated safety functions on a major European mid-class vehicle model due to start production in 2008. The vehicle features TRW's Electronic Stability Control braking system and Electrically Powered Steering, in addition to video sensing to enable integrated vehicle control systems such as Lane Departure Warning/Lane Guidance and Steering Torque Control. This vehicle is expected to include the first launch of TRW's video camera technology integrated with Electric Power Steering to enable haptic lane feedback and assist with lane keeping. In this system the video camera detects when the vehicle is drifting toward the lane markings and the electric steering then applies the proper torque to assist the driver in keeping the vehicle in its lane. "We believe this vehicle will be one of the most technologically advanced in the world," said Alois Seewald, global director, Research and Development for TRW. "The combination of electronically controlled braking and steering with environmental sensors help give a clear picture of the driving environment and road conditions as well as the driver's intended path." With this information the system functions can work together to support the driver through warnings if a potentially dangerous situation is sensed, 'coach' the driver to steer in the proper direction to restore vehicle control, or brake wheels individually and cut engine torque if necessary. The systems will also enable park assist for automated parallel parking. TRW will also be providing its Active Control Retractor (ACR) seatbelt technology to a major Korean vehicle manufacturer in 2008 which will work in combination with a radar-based Adaptive Cruise Control system. TRW was first to market when it launched the ACR technology with Mercedes on S Class models in 2002. Mr. Seewald continued: "This exciting vehicle launch is an example of active and passive systems working in tandem. The ACR can use sensor information from driver assist systems radar or vision systems to sense when a vehicle is approaching a target too quickly. If this occurs the ACR system removes the seatbelt slack to help better position the occupant in relation to the vehicle's airbag restraint system in case of a crash and resets itself if it is avoided." "Such new vehicles are a landmark in safety integration," summarized Mr. John C. Plant, president and chief executive officer, TRW Automotive. "The combination of active braking, steering, suspension and driver assist systems helps to open a world of possibilities for vehicle safety that is fast becoming a reality in today's vehicle market." About TRW Automotive Headquartered in Livonia, Michigan, TRW Automotive Holdings Corp. (NYSE: TRW) -- http://www.trwauto.com/-- is an automotive supplier. Through its subsidiaries, it employs approximately 63,800 people in 26 countries, including Brazil, China, Germany and Italy. TRW Automotive products include integrated vehicle control and driver assist systems, braking systems, steering systems, suspension systems, occupant safety systems (seat belts and airbags), electronics, engine components, fastening systems and aftermarket replacement parts and services. * * * Fitch assigned a 'BB' on TRW Automotive Holdings Corp.'s LT Issuer Default rating and 'BB-' on its Unsecured Debt rating. Fitch said the outlook is stable. XEROX CORPORATION: To Acquire Advectis for US$32 Million -------------------------------------------------------- Xerox Corporation plans to buy Advectis(R), Inc. for US$32 million. Advectis is the provider of one of the mortgage industry's most widely-used solutions for electronic document collaboration. Xerox's expertise in document outsourcing and services led the company to Advectis, a privately-owned business based in Atlanta. In a predominately paper-based industry, Advectis' Web-based BlitzDocs Collaboration Suite helps lenders, brokers and investors manage the process needed to underwrite, audit, collaborate, deliver and archive loan documents electronically. Taking paper out of the process, the BlitzDocs(R) patented technology helps users reduce costs associated with the lending process, deliver better service, decrease credit risk by improving documentation processes and build a competitive advantage in capturing new loan applications. "Anyone who has ever bought a home knows that the mortgage business is dependent on paper. Filling out an extensive number of forms is time and labor-intensive work," said John Kelly, president, Xerox Global Services North America. "We're looking to help clients reduce costs and transform their business by offering a better experience for both end-users and operations. Xerox's expertise in automating document processes is an ideal fit with Advectis' BlitzDocs paperless solution for mortgages. In an industry that is ripe for change, Advectis offers technology that improves productivity for its users while giving lenders better control of their processes." According to Craig Focardi, research area director for the retail banking practice of research firm TowerGroup, "Enterprise content management systems are reducing the great paper chase in loan origination, where a lender controls the paper loan file and manually redistributes documents multiple times to multiple parties. Lenders are increasingly adopting document imaging and electronic content management as a major area of cost savings, faster loan processing and improved customer service." The amount of paper associated with this industry leads to inefficient processes which, best case, are productivity drains and, worst case, can lead to a loss of control in the quality of the loans. TowerGroup estimates document management costs in loan origination totaled US$3.2 billion last year. A BlitzDocs electronic loan folder mirrors the paper loan folder used today but improves efficiencies in the loan cycle, allowing mortgage participants to view and process online documents anytime, anywhere. Clients benefit from a network with more than 35,000 broker shops, the top seven mortgage insurance companies and four of the top due diligence providers. "With this acquisition, Advectis is positioned to create even stronger offerings, services and technologies for our clients," said Greg Smith, co-founder and chief executive officer of Advectis. "Partnering with Xerox makes perfect sense for the future of our business. Our combined expertise and resources means increased collaboration and decreased loan processing costs for BlitzDocs users." Advectis was founded in 2000 and currently employs about 41 people, most of whom are based at the company's headquarters in Atlanta. Upon completion of the acquisition, all employees are expected to join Xerox. Smith will remain head of the organization, reporting to Kelly. Xerox's all-cash purchase of Advectis also includes an additional performance-based supplement to the sale price. The acquisition is expected to close in the next 30 days, subject to customary closing conditions. Xerox's industry-leading document technology and services portfolio includes consulting and outsourcing services, records management, digital imaging, e-discovery for litigation support and managed services in more than 160 countries. Through its acquisition strategy, Xerox is identifying successful companies whose offerings align with Xerox's commitment to innovation and reducing the complexity of document management. Last year, Xerox acquired Amici LLC, a leading provider of electronic-discovery services, primarily supporting litigation and regulatory compliance, and XMPie, which provides variable information software for the graphic arts and marketing industries. About Xerox Corp. Headquartered in Stamford, Connecticut, Xerox Corp. -- http://www.xerox.com/-- develops, manufactures, markets, services and finances a range of document equipment, software, solutions and services. Xerox operates in over 160 countries worldwide and distributes products in the Western Hemisphere through divisions, wholly owned subsidiaries and third-party distributors. The company maintains operations in France, Japan, Italy, Nicaragua, among others. * * * As reported in the Troubled Company Reporter-Latin America on April 4, 2007, Fitch Ratings has affirmed Xerox Corp.'s and its subsidiary's ratings: Xerox Corp. -- Trust preferred securities at 'BB'; -- Issuer Default Rating at 'BBB-'; -- Unsecured credit facility at 'BBB-'; and -- Senior unsecured debt at 'BBB-'. Xerox Credit Corp. -- Issuer Default Rating at 'BBB-'; and -- Senior unsecured debt at 'BBB-'. As reported in the Troubled Company Reporter-Latin America on April 4, 2007, Standard & Poor's Ratings Services placed its ratings on Xerox Corp., including the 'BB+' corporate credit rating, on CreditWatch with positive implications. The CreditWatch placement reflects the company's announcement that it has reached an agreement in principle to acquire Global Imaging Systems Inc. for approximately US$1.5 billion in cash. =================== K A Z A K H S T A N =================== AGYBAI LLP: Proof of Claim Deadline Slated for Oct. 19 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Agybai insolvent. Creditors have until Oct. 19 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Tolstoy Str. 74 Kostanai Kazakhstan AMIL LLP: Creditors Must File Claims Oct. 19 -------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Amil insolvent. Creditors have until Oct. 19 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Gogol Str. 177a Kostanai Kazakhstan ANASTASIYA LLP: Claims Filing Period Ends Sept. 20 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Jambyl has declared LLP Anastasiya insolvent. Creditors have until Sept. 20 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Jambyl Suleymenov Str.17 (11a) Taraz Jamby Kazakhstan AS-TORG LLP: Creditors' Claims Due on Oct. 19 --------------------------------------------- The Specialized Inter-Regional Economic Court of Astana has declared LLP As-Torg insolvent. Creditors have until Oct. 19 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Astana Valihanov Str. 71-68 Astana Kazakhstan Tel: 8 (3172) 21-48-16 GAISA LLP: Claims Registration Ends Oct. 19 ------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Gaisa insolvent. Creditors have until Oct. 19 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Tolstoy Str. 74 Kostanai Kazakhstan MANGISTAU ELECTRICITY: Fitch Rates IDR at BB+; Stable Outlook ------------------------------------------------------------- Fitch Ratings has assigned Kazakhstan's regulated regional electricity distribution company Mangistau Electricity Distribution Network Company a Long-term Issuer Default rating of 'BB+', a Short-term IDR of 'B' and a National Long-term rating of 'A+(kaz)'. The Outlooks on the Long-term IDR and the National Long-term rating are Stable. In addition, Fitch has assigned MEDNC's domestic bonds senior unsecured foreign and local currency ratings of 'BB+'. The proposed ratings are based on MEDNC's near-monopoly position in electricity transmission and distribution in Mangistau, one of Kazakhstan's strategic oil and gas regions; an expectation of economic development and expansion in the region both in relation to oil and gas business and certain other industries; its regulatory framework, continued majority State ownership via Samruk, and implied state support as well as its sound financial profile. The ratings are linked to the Republic of Kazakhstan ('BBB' / Positive Outlook) but notched down to reflect the fact that little indication has been given by MEDNC's parent, State-owned holding company Samruk, that in case of financial distress the parent will provide timely financial assistance. The ratings are also constrained by prospective high capital expenditure requirements relative to the small scale of its operations. This results in limited prospective capacity to generate cash to finance the company's ambitious investment program. In addition, the ratings are based on the assumption that MEDNC will proceed with its IPO plans and that the State's stake will not reduce to below 50 % + one share after the IPO. In the event that the State's shareholding becomes lower than 50 % + one share, MEDNC will be de-linked from the sovereign. Any future rating changes will therefore depend on MEDNC's resultant standalone financial profile and credit metrics. If MEDNC elects not to proceed with the IPO, and the state remains a beneficial owner of 100 % of MEDNC, the two-notch differential from the sovereign rating would likely be maintained. The Stable Outlook reflects Fitch's expectations that MEDNC will be able to maintain a sound financial profile and good credit metrics and achieve timely implementation of its investment program. Currently, MEDNC is moderately leveraged with KZT1.7 billion of debt currently outstanding. The debt is represented by three unsecured fixed-rate bond issues under the debut domestic bond program registered in 2005, of which KZT8.16 billion is unused. Maturities of the aforementioned bonds are 2010, 2011 and 2012. MEDNC is a state-owned near-monopoly regional electricity distribution company which services the region of Mangistau (with the exception of the city of Aktau) located in the south- west of Kazakhstan near the Caspian Sea. It accounts for 2.5 % of Kazakhstan's transmission and distribution. MEDNC's fiscal year 2006 revenues, 95 % of which were generated from regulated activities, were KZT2.2 billion (US$17.1 million). MEDNC's share of the Mangistau electricity distribution market is 90 %. NIKOLAS LLP: Proof of Claim Deadline Slated for Oct. 12 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan has declared LLP Nikolas insolvent. Creditors have until Oct. 12 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of North Kazakhstan Valihanov Str. 19-149 Petropavlovsk North Kazakhstan Kazakhstan NNS-PROLOGIC LLP: Creditors Must File Claims Oct. 19 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Astana has declared LLP Nns-Prologic insolvent. Creditors have until Oct. 19 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Astana Valihanov Str. 71-68 Astana Kazakhstan Tel: 8 (3172) 21-48-16 OLTIS LLP: Claims Filing Period Ends Sept. 27 --------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Oltis insolvent. Creditors have until Sept. 27 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (3162) 25-79-32 SILICH & K: Creditors' Claims Due on Sept. 27 --------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Silich & K. insolvent. Creditors have until Sept. 27 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (3162) 25-79-32 VOKZAL-SERVICE JSC: Claims Registration Ends Oct. 19 ---------------------------------------------------- Southern Regional Branch of JSC Vokzal-Service has declared insolvency. Creditors have until Oct. 19 to submit written proofs of claims to: Southern Regional Branch of JSC Vokzal-Service Furmanov Str. 127 Almaty Kazakhstan =================== K Y R G Y Z S T A N =================== REGIONAL TRANS: Proof of Claim Deadline Slated for October 19 ------------------------------------------------------------- LLC Regional Trans Service Ltd. has declared insolvency. Creditors have until Oct. 19 to submit written proofs of claim to: LLC Regional Trans Service Ltd. Abdrahmanov Str. 201 Bishkek Kyrgyzstan ===================== N E T H E R L A N D S ===================== FOOT LOCKER: Warns Non-Compliance with Fixed Charge Ratio --------------------------------------------------------- Foot Locker Inc. disclosed in a filing with the U.S. Securities and Exchange Commission that based on its second quarter financial results and business uncertainties for the second half of the year, it may not continue to be in compliance with the fixed charge coverage ratio. In addition, the company adds, the restricted payment provision may prohibit the company from the payment of the dividend at the current rate in 2008. In the event that the company does not satisfy one or more of the covenants, it will evaluate several options and expects that it would be able to obtain a waiver, amend the agreement, or enter into a new credit facility. Credit Facility The company discloses that it has a US$200 million revolving credit facility. Other than to support standby letter of credit commitments, of which US$14 million were in place at Aug. 4, 2007, the revolving credit facility has not been used during 2007. In 2004, the company obtained a 5-year, US$175 million amortizing term loan from the bank group participating in the revolving credit facility, of which US$88 million is outstanding as of Aug. 4, 2007. Under the company's revolving credit and term loan agreement the company is required to satisfy certain financial and operating covenants, including a minimum fixed charge coverage ratio. In addition, this agreement restricts the amount the company may expend in any year for dividends to 50% of its prior year's net income. About Foot Locker Headquartered in New York City, Foot Locker, Inc. (NYSE: FL) -- http://www.footlocker-inc.com/-- retails athletic footwear and apparel. The company operates approximately 3,900 athletic retail stores in 17 countries in North America, The Netherlands and Australia under the brand names Foot Locker, Footaction, Lady Foot Locker, Kids Foot Locker, and Champs Sports. The company also has about 350 Footaction stores in the US and Puerto Rico, which sell footwear and apparel to young urbanites. FOOT LOCKER: S&P Retains BB+ Ratings Under Negative Watch --------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings, including the 'BB+' corporate credit rating, on New York City- based specialty footwear retailer Foot Locker Inc. will remain on CreditWatch with negative implications, where they were placed on Aug. 18, 2006. This statement follows the company's announcement that it may not remain in compliance with its fixed-charge coverage ratio based on actual second-quarter and anticipated second-half performance. "We expect that Foot Locker will be able to obtain a waiver or amendment for the fixed-charge coverage ratio, but we will monitor developments as they occur," said Standard & Poor's credit analyst David Kuntz. Additionally, the company's restricted payment provision may prohibit dividend payments at current levels. About Foot Locker Headquartered in New York City, Foot Locker, Inc. (NYSE: FL) -- http://www.footlocker-inc.com/-- retails athletic footwear and apparel. The company operates approximately 3,900 athletic retail stores in 17 countries in North America, The Netherlands and Australia under the brand names Foot Locker, Footaction, Lady Foot Locker, Kids Foot Locker, and Champs Sports. The company also has about 350 Footaction stores in the US and Puerto Rico, which sell footwear and apparel to young urbanites. GLOBAL POWER: Disclosure Statement Hearing Set for October 9 ------------------------------------------------------------ The Hon. Brendan Linehan Shannon of the U.S. Bankruptcy Court for the District of Delaware set a hearing at 1:00 p.m., on Oct. 9, 2007, to consider the adequacy of the Disclosure Statement explaining Global Power Equipment Group Inc., and its debtor-affiliates' Joint Chapter 11 Plan of Reorganization. The Debtors filed their plan and disclosure statement on September 10. The Debtors relate that their businesses will continue to be operated in substantially their current form. However, debtor- affiliates The Deltak Construction Services, Inc., and Deltak, L.L.C., will continue to wind-down their heat recovery steam generation business segment. Also, pursuant to certain transactions, the Debtors utilized a centralized cash management system wherein cash received by the operating subsidiaries is transferred to the Global Power's cash accounts and then subsequently transferred to subsidiaries to meet operating needs. Debtor Groups For purposes of voting on the Plan, the Debtors relates that the estates of certain debtor-affiliates are treated as a single estate. The groups are: * GPEG Debtor Group, comprised of: -- Global Power Equipment Group Inc. -- Global Power Professional Services, L.L.C.; * Braden Debtor Group, comprised of: -- Braden Manufacturing, L.L.C. -- Braden Construction Services, Inc.; and * Williams Debtor Group, comprised of: -- Williams Industrial Services Group, L.L.C. -- Williams Industrial Services, LLC -- Williams Specialty Services, LLC -- Williams Plant Services, LLC -- WSServices, LP. The Debtors however relates that Deltak Construction Services, Inc. and Deltak, L.L.C. will not be treated as comprising one estate. Treatment of Claims Under the Plan, Administrative Claims and Tax Claims will be paid in full. 1. GPEG Debtor Claims Holders of Priority Claims, Secured Claims, and Unsecured Claims will be paid in full. Holders of Subordinated Note Claims will receive a pro rata share of the Noteholder Settlement Amount in accordance with the Noteholder Settlement Agreement. Claimants under this class are expected to recover 96% of their claims. Holders of WARN Act (Individual) Claims will receive cash equal to their pro rata share of the WARN Act (Individual) Settlement Amount while holders of WARN Act (Putative Class) Claims will receive cash equal to their pro rata share of the WARN Act (Putative Class) Settlement Amount. Holders under these two classes are estimated to recover 100% of their claims. All Equity Interests in Global Power Equipment will be cancelled. Holders, on the Plan Distribution Date, will receive one share of New Common Stock in New GPEG for each share of common stock of GPEG owned; and ratable rights proportion of rights to acquire new common stock in New GPEG in accordance with the Rights Offering described in the Plan. Allowed Equity Interest in other GPEG Debtors will be fully reinstated and retained. 2. Williams Debtor Claims Holders of Priority Claims, Secured Claims, and Unsecured Claims will be paid in full. Equity Interest will be fully reinstated and retained. 3. Braden Debtor Claims Holders of Priority Claims, Secured Claims, and Unsecured Claims will be paid in full. Equity Interest will be fully reinstated and retained. Holders of Subordinated Note Guarantee Claims will receive the same treatment given to GPEG Debtors. 4. Deltak Claims Holders of Priority Claims and Secured Claims will be paid in full. Holders of Subordinated Note Guarantee Claims will receive the same treatment given to GPEG Debtors. Holders of WARN Act (Individual) Claims will receive cash equal to their pro rata share of the WARN Act (Individual) Settlement Amount while holders of WARN Act (Putative Class) Claims will receive cash equal to their pro rata share of the WARN Act (Putative Class) Settlement Amount. Holders under these two classes are estimated to recover 100% of their claims. If Deltak's general unsecured creditors accept the plan, then as determined by the Deltak Plan Administrator, they will receive a pro rata share of: * the Deltak Settlement Amount of US$34 million in cash; * the Deltak Avoidance Action Recoveries; and * the Deltak Warranty Recoveries. If unsecured creditors reject the plan, they will instead receive a pro rata share of the Deltak Plan Reserve. However, if the Deltak Plan Reserve isn't established pursuant to the plan, then general unsecured creditors will receive a pro rata share, in cash, of the Alternative Deltak Settlement of US$30 million. Equity Interest in Deltak will be reinstated and retained. 5. Deltak Construction Claims Holders of Priority Claims, Secured Claims, and Unsecured Claims will be paid in full. Equity Interest will be fully reinstated and retained. Holders of Subordinated Note Guarantee Claims will receive the same treatment given to GPEG Debtors. About Global Power Headquartered in Oklahoma, Global Power Equipment Group Inc. (Pink Sheets: GEGQQ) -- http://www.globalpower.com/-- is a design, engineering and manufacturing firm providing an array of equipment and services to the energy, power infrastructure and process industries. The company designs, engineers and manufactures a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, and has over 40 years of power generation industry experience. The company's equipment is installed in power plants and in industrial operations in more than 40 countries on six continents. In addition, the company provides routine and specialty maintenance services to nuclear, coal-fired, fossil, and hydroelectric power plants and other industrial operations. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No. 06-11045). Eric Michael Sutty, Esq., Jeffrey M. Schlerf, Esq., Kathryn D. Sallie, Esq., and Mary E. Augustine, Esq., at The Bayard Firm and Malka S. Resnicoff, Esq., and Matthew C. Brown, Esq., at White & Case LLP, represent the Debtor. Adam G. Landis, Esq., Kerri K. Mumford, Esq., and Matthew B. McGuire, Esq., at Landis Rath & Cobb LLP, represent the Official Committee of Unsecured Creditors. At Sept. 30, 2005, the Debtors' balance sheet showed total assets of US$381,131,000 and total debts of US$123,221,000. GLOBAL POWER: Court Extends Exclusivity Period to September 28 -------------------------------------------------------------- The Hon. Brendan Linehan Shannon of the U.S. Bankruptcy Court for the District of Delaware issued a fourth bridge order extending Global Power Equipment Group Inc., and its debtor- affiliates' exclusive period to file a chapter 11 plan until Sept. 28, 2007. Judge Shannon also extended the Debtors' exclusive period to solicit acceptance of the plan to Nov. 27, 2007. The Court has scheduled a hearing on September 28 to consider further the Debtors' request to extend their exclusive periods. Headquartered in Oklahoma, Global Power Equipment Group Inc. (Pink Sheets: GEGQQ) -- http://www.globalpower.com/-- is a design, engineering and manufacturing firm providing an array of equipment and services to the energy, power infrastructure and process industries. The company designs, engineers and manufactures a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, and has over 40 years of power generation industry experience. The company's equipment is installed in power plants and in industrial operations in more than 40 countries on six continents. In addition, the company provides routine and specialty maintenance services to nuclear, coal-fired, fossil, and hydroelectric power plants and other industrial operations. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No. 06-11045). Eric Michael Sutty, Esq., Jeffrey M. Schlerf, Esq., Kathryn D. Sallie, Esq., and Mary E. Augustine, Esq., at The Bayard Firm and Malka S. Resnicoff, Esq., and Matthew C. Brown, Esq., at White & Case LLP, represent the Debtor. Adam G. Landis, Esq., Kerri K. Mumford, Esq., and Matthew B. McGuire, Esq., at Landis Rath & Cobb LLP, represent the Official Committee of Unsecured Creditors. At Sept. 30, 2005, the Debtors' balance sheet showed total assets of US$381,131,000 and total debts of US$123,221,000. =========== P O L A N D =========== AFFILIATED COMPUTER: Extends Contract with Hawaii Medicaid ---------------------------------------------------------- Affiliated Computer Services Inc. has extended contract with the Hawaii Department of Human Services' Med-QUEST Division to continue providing fiscal agent and pharmacy benefits management (PBM) services to the state's Medicaid program. The six-month extensions of the two contracts are valued at a combined US$6.4 million. ACS has provided fiscal agent and PBM services to Hawaii's Medicaid program since 2001. "We value our partnership with Med-QUEST and look forward to continuing to serve the needs of Hawaiians across the state," said Christopher T. Deelsnyder, ACS senior vice president and managing director, Government Healthcare Solutions. "ACS is known for listening to our customers, determining their business requirements, and implementing innovative solutions for the recipients, providers, and taxpayers in the states we serve." Fiscal agent services provided include: * mailroom, claims receipt, sorting, screening and imaging; * third party liability; * claims entry, optical character recognition, claims resolution and adjustment; * prior authorization data entry; provider remittance advice and distribution; * claims payment (check and Electronic Funds Transfer) cash control and bank accounts; * provider call center, training, and publications; * Electronic Data Interchange claims submission; * automated PA entry for waiver services; * quality assurance and report card; * Automated Voice Response for eligibility verification; and * ID card processing. PBM services include pharmacy claims processing, automated prior authorizations, call center prior authorizations, drug rebate administration, a Healthcare Common Procedure Coding System (HCPCS) crosswalk table, and help desk services. About Affiliated Computer Affiliated Computer Services Inc. (NYSE: ACS) -- http://www.AffiliatedComputer-inc.com/ -- provides business process outsourcing and information technology solutions to world-class commercial and government clients. The company has more than 58,000 employees supporting client operations in nearly 100 countries. The company has global operations in Brazil, China, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland, and Singapore. * * * Affiliated Computer Services currently carries Fitch Ratings' BB Issuer Default Rating. =========== R U S S I A =========== ALFA-OBL-STROY: Creditors Must File Claims by Sept. 25 ------------------------------------------------------ Creditors of CJSC Alfa-Obl-Stroy (TIN 7453037964) have until Sept. 25 to submit proofs of claim to: E. Bogdanov Insolvency Manager Chkalova Str. 21 390029 Ryazan Russia The 18th Arbitration Court of Chelyabinsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-8062/2007-36-104. The Court is located at: The Arbitration Court of Chelyabinsk Vorovskogo Str. 2 454091 Chelyabinsk Russia The Debtor can be reached at: CJSC Alfa-Obl-Story Entuziastov Str. 11 454048 Chelyabinsk Russia AVEST OJSC: Creditors Must File Claims by Sept. 25 -------------------------------------------------- Creditors of OJSC Production-Trading Company Avest have until Sept. 25 to submit proofs of claim to: I. Korol Temporary Insolvency Manager Malinovskogo Str. 43-96 Khabarovsk Russia The Arbitration Court of Khabarovsk commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A73-7274/2007-38. The Debtor can be reached at: OJSC Production-Trading Company Avest Krasnorechenskaya Str. 111 Khabarovsk Russia BRYANSK-GLASS LLC: Creditors Must File Claims by Oct. 25 -------------------------------------------------------- Creditors of LLC Bryansk-Glass have until Oct. 25 to submit proofs of claim to: G. Zinakov Insolvency Manager Post User Box 200 241050 Bryansk Russia The Arbitration Court of Bryansk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A09-7767/06-26. The Court is located at: The Arbitration Court of Bryansk Room 602 Trudovoy Per. 5 Bryansk Russia The Debtor can be reached at: LLC Bryansk-Glass Moskovskiy Pr. 106 241004 Bryansk Russia BUGURUSLAN-AGRO-PROM-SNAB: Creditors Must File Claims by Oct. 25 ---------------------------------------------------------------- Creditors of OJSC Buguruslan-Agro-Prom-Snab have until Oct. 25 to submit proofs of claim to: D. Bykovskikh Insolvency Manager Post User Box 3167 460001 Orenburg Russia The Arbitration Court of Orenburg commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A47-2144/07-14GK. The Court is located at: The Arbitration Court of Orenburg 9th January Str. 64 460046 Orenburg Russia The Debtor can be reached at: OJSC Buguruslan-Agro-Prom-Snab 9th January Str. 86 Buguruslan Orenburg Russia DYURTYULINSKOE MIXED: Asset Sale Slated for September 24 -------------------------------------------------------- LLC Auction-Garant, the bidding organizer for OJSC Dyurtyulinskoe Mixed Fodder Enterprise, will open a public auction for the company's properties at noon on Sept. 24 at: LLC Auction-Garant Bessonova Str. 2B Ufa 450001 Bashkortostan Russia The case is docketed under Case No. A07-18644/06-G-GRA. The company has set a RUR7,853,600 starting price for the auctioned assets. Interested participants have until Sept. 20 to deposit an amount equivalent to 10% of the starting price to: LLC Auction-Garant Settlement Account 40702810504000001194 Correspondent Account 30101810000000000891 BIK 048073891 OJSC InvestCapitalBank Bidding documents must be submitted to: LLC Auction-Garant Bessonova Str. 2B Ufa 450001 Bashkortostan Russia The Debtor can be reached at: OJSC Dyurtyulinskoe Mixed Fodder Enterprise Internatsionalnaya Str. 4/1 Dyurtyuli Dyurtyulinskij 452320 Bashkortostan Russia EAST-CHUKOTKA GOLD: Court Names S. Aliev as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Chukotskiy appointed S. Aliev as Insolvency Manager for CJSC East-Chukotka Gold Mining Company. He can be reached at: S. Aliev Post User Box 284 680028 Anadyr Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A80-40/2005-B. The Debtor can be reached at: S. Aliev Post User Box 284 680028 Anadyr Russia GSM-TRADE LLC: Creditors Must File Claims by Sept. 25 ----------------------------------------------------- Creditors of LLC GSM-Trade (TIN 2703036501) have until Sept. 25 to submit proofs of claim to: O. Zlobin Temporary Insolvency Manager Post User Box 6/12 Central Post Office 680000 Khabarovsk Russia The Arbitration Court of Khabarovsk commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A73-6846/2007-38. The Debtor can be reached at: LLC GSM-Trade 4th Strelkovaya Str. 16 Komsomolsk-na-Amure Russia IZH-MASH-SERVICE: Bankruptcy Hearing Slated for Oct. 11 ------------------------------------------------------- The Arbitration Court of Chuvashiya will convene at 9:45 a.m. on Oct. 11 to hear the bankruptcy supervision procedure on CJSC IZH-Mash-Service (TIN 2128000907, OGRN 1022101134989). The case is docketed under Case No. A79-4351/2007. The Temporary Insolvency Manager is: Y. Paramonov Post User Box 42 Post Office 9 Cheboksary 428009 Chuvashiya Russia The Debtor can be reached at: CJSC IZH-Mash-Service Lapsarskiy Pr. 146 Cheboksary 428016 Chuvashiya Russia KADOM-AGRO-PROM-SERVICE: Creditors Must File Claims by Oct. 25 -------------------------------------------------------------- Creditors of OJSC Kadom-Agro-Prom-Service have until Oct. 25 to submit proofs of claim to: S. Papenko Insolvency Manager Post User Box 7 390029 Ryazan Russia The Arbitration Court of Ryazan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A54-126/2007-S20. The Court is located at: The Arbitration Court of Ryazan Pochtovaya Str. 43/44 Ryazan Russia The Debtor can be reached at: OJSC Kadom-Agro-Prom-Service Svobody 10 Kadom Ryazan Russia KAMA-OIL LLC: Tatarstan Bankruptcy Hearing Slated for Dec. 13 ------------------------------------------------------------- The Arbitration Court of Tatarstan will convene at 1:15 p.m. on Dec. 13 to hear the bankruptcy supervision procedure on LLC Kama-Oil. The case is docketed under Case No. A65-11412/ 2007-SG4-40. The Temporary Insolvency Manager is: T. Shamshutdinova Safiullina Str. 8 Kazan 420110 Tatarstan Russia The Court is located at: The Arbitration Court of Tatarstan Room 12 Floor 2 Entrance 2 Building 1 Kremlin Kazan Tatarstan Russia The Debtor can be reached at: LLC Kama-Oil Avtomobilistov Str. 13 Almetyevsk 423450 Tatarstan Russia NOVOROSSIYSK COMMERCIAL: Moody's Lifts Loan Rating to Ba1 --------------------------------------------------------- Moody's Investors Service upgraded the US$300 million senior unsecured Loan Participation Notes issued by Novorossiysk Port Capital S.A. to Ba1 from Ba2. The Ba1 Corporate Family Rating of OJSC Novorossiysk Commercial Seaport has been affirmed. At the same time Moody's has assigned a Aa1.ru Russian National Scale Corporate Family Rating to NCSP. The rating outlook is stable. This rating action follows changes to the NCSP group's debt structure. More particularly, in line with NCSP's initial financial strategy, almost all of the NCSP group's secured bank debt has either been repaid or has had the security that supported it retired, or is in the process of having such security interests retired, a process which should be complete by the end of 2007. As a consequence, the subordination of the Loan Participation Notes to debt in the operating companies has been eliminated. The Loss Given Default assessment of the Loan Participation Notes has been amended to LGD-4 (52%) (expressed through a six-point symbol system that orders expected loss severity from lowest to highest in percentage terms) from LGD-4 (65%) accordingly. Moody's last rating action was on May 9, 2007 when first-time ratings were assigned to NCSP and the Loan Participation Notes. NCSP's Ba1 Corporate Family Rating reflects the combination of these inputs: (1) a Baseline Credit Assessment of 12 (which equates to a Ba2 rating on the Moody's rating scale), (2) the Baa2 local currency rating of the Government of the Russian Federation, (3) medium Dependence and (4) low Support. Thus the final rating is one notch higher than the Baseline Credit Assessment implied rating. The Ba1 Corporate Family Rating further reflects a Probability of Default Rating (PDR) of Ba1 and a firm-wide LGD assessment of 50%. The Aa1.ru Russian National Scale Rating maps to Ba1 on the Moody's Global Rating Scale. The Ba1 rating of the Loan Participation Notes and LGD-4 (52%) loss given default assessment reflect the current and anticipated group debt structure which does not evidence significant structural or security subordination for the holding company debt. The Baseline Credit Assessment of 12 reflects: (i) NCSP's role as the operator of most of the stevedoring capacity at one of Russia's most important seaports under a long-term lease arrangement and NCSP's nationwide service area; (ii) the substantial growth prospects and material capital expenditure obligations required to meet this anticipated growth, somewhat counteracted by; (iii) the risk that significant year-on-year growth assumptions are not achieved; and (iv) a capital structure incorporating somewhat shorter debt maturities than usual for a major infrastructure borrower and modest contractually committed third party liquidity. The Low level of Support (an assessment of the likelihood of the Government stepping in to avoid a default in the case of need) reflects the modest level of Government ownership but the strategic importance of the port to Russia, the latter counteracted somewhat by the relatively modest economic importance of NCSP to the finances of the Government. The medium Dependence reflects the relatively high exposure NCSP has to oil, which is also an important driver of the Russian economy, together with other commodity cargoes which are also to some extent dependent on the general health of the Russian economy. NCSP's stable outlook reflects Moody's expectation that NCSP will see continued growth in its business, that capital expenditure programs are appropriate for the expected growth, but that if revenues do not expand as fast as anticipated, the rating can absorb the levels of debt implied by lower growth assumptions. Nevertheless, continued access to bank markets will be important to NCSP and is an important rating factor. NCSP's rating could be upgraded if it were to see a significant reduction in expected debt levels through strong growth in revenues underpinned by the reliable establishment of cargo flows anticipated by NCSP, together with modest additional future capital expenditure. This would need to be achieved in conjunction with a sound liquidity position. However, such credit improvement is not expected to occur within the next 18- 24 months. The rating could be downgraded if NCSP fails to generate material revenue growth and/or NCSP makes significant investments in non-port-related activities that counteracted the expected effective de-leveraging. Furthermore, evidence of problems accessing the banking markets will likely result in a ratings downgrade. This rating action, OJSC Novorossiysk Commercial Sea Port has these ratings outstanding with a stable outlook: -- Corporate Family Rating (Foreign Currency) -- Ba1 / Aa1.ru; -- Corporate Family Rating (Foreign Currency) -- Probability of Default Rating -- Ba1; -- Novorossiysk Port Capital S.A. -- US dollar Loan Participation Notes -- Ba1; and -- Novorossiysk Port Capital S.A. -- US dollar Loan Participation Notes -- LGD-4 (52%). OJSC Novorossiysk Commercial Sea Port NCSP is company providing stevedoring services at the Port of Novorossiysk located on Russia's Black Sea Coast. It had revenues of US$277.3 million for year ended Dec. 31, 2006, and total assets of US$1.294.2 billion as at that date. RADAR CJSC: Creditors Must File Claims by Oct. 25 ------------------------------------------------- Creditors of CJSC Radar have until Oct. 25 to submit proofs of claim to: V. Stavtsev Insolvency Manager Office 49 Gorkogo Str. 45 302040 Orel Russia The Arbitration Court of Orel commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A48-564/07-20b. The Court is located at: The Arbitration Court of Orel Gorkogo Str. 42 302000 Orel Russia The Debtor can be reached at: CJSC Radar Naugorskoe Shosse 5 Orel Russia RESERVE LLC: Creditors Must File Claims by Oct. 25 -------------------------------------------------- Creditors of LLC Reserve (TIN 2108002110, OGRN 1022101830101) have until Oct. 25 to submit proofs of claim to: Y. Paromonov Insolvency Manager Post User Box 42 Cheboksary 428009 Chuvashiya Russia The Arbitration Court of Chuvashiya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A79-1439/2007. The Debtor can be reached at: LLC RESERVE Mira Str. 5 Komsomolskoe Komsomolskiy 429140 Chuvashiya Russia ROSNEFT OIL: State Eyes 50% Volgotanker Stake Sale to Firm ---------------------------------------------------------- The Samara regional authorities plan to offer 50% of bankrupt OAO Volgotanker to OAO Rosneft Oil Co., Interfax News reports citing Boris Ardalin, Samara's acting Transport, Communications and Highway Minister. Mr. Ardalin told Interfax that Rosneft may acquire the government's 20% stake in Volgotanker as well as the shares that will be offered during the company's bankruptcy process. "We think that we need to sell 50% of the shipping company to a company that needs such a carrier," Mr. Ardalin told Interfax. "Selling the shares to Rosneft will resolve problems connected with reviving the fleet and modernizing the enterprise. This is why we will ask Rosneft management to discuss this possibility." Mr. Ardalin added that Alexander Volzhanin, Volgotanker's supervisory manager, has agreed with the planned stake sale. As reported in the TCR-Europe on Aug. 14, 2007, the Moscow Arbitration Court commenced bankruptcy proceedings against OAO Volgotanker after upholding a EUR3.34 billion tax claim by the Russian Federal Tax Service, and appointed Mr. Volzhanin as supervisory manager. The Federal Tax Service filed tax claims against Volgotanker in 2004 after finding that that company illegally refunded export VAT from the budget, Kommersant relates. According to the report, the tax service filed a RUR4 billion claim for unpaid taxes in 2001 to 2005. The tax service also filed two criminal cases against Volgotanker and had three executives added to the international wanted list. Volgotanker suspended its operations in 2006 after the tax service seized 353 vessels from Volgotanker's fleet in 2005. About Volgotanker Headquartered in Samara, Russia, OAO Volgotanker -- http://www.volgotanker.com/-- specializes in the transportation of oil and petroleum products via Europe's inland-waterway system. Lloyds List says the company's fleet of 160 tankers, 57 oil-bulk-ore carriers and more than 100 barges and tugs have been under arrest since August 2005. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://www.rosneft.com/-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus, and the Arctic regions of Russia. * * * As of July 17, 2007, OAO Rosneft Oil Co. carries a BB+ long-term corporate credit rating from Standard & Poor's Ratings Services. S&P said the outlook is positive. TRANS-FLOT CJSC: Court Names V. Lukyanov as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Volgograd appointed V. Lukyanov as Insolvency Manager for CJSC Trans-Flot (TIN 3445040807). He can be reached at: V. Lukyanov Insolvency Manager 7th Gvardeyskaya Str. 2-215 Volgograd-5 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A12-11102/07-S49. The Debtor can be reached at: CJSC Trans-Flot Raboche-Krestyanskaya Str. 22 Volgograd-74 Russia TSAREVSKIY MEAT: Chuvashiya Bankruptcy Hearing Slated for Oct. 9 ---------------------------------------------------------------- The Arbitration Court of Chuvashiya will convene at 1:15 p.m. on Oct. 9 to hear the bankruptcy supervision procedure on CJSC Agricultural Company Tsarevskiy Meat Combine (TIN 2122004623). The case is docketed under Case No. A79-1718/2007. The Temporary Insolvency Manager is: I. Kolsanov Post User Box 28 Guzovskogo 14 Cheboksary 428000 Chuvashiya Russia The Debtor can be reached at: CJSC Agricultural Company Tsarevskiy Meat Combine Beregovaya Str. 2 Alatyr 429826 Chuvashiya Russia VOLGOTANKER OAO: Samara Officials Eye 50% Stake Sale to Rosneft --------------------------------------------------------------- The Samara regional authorities plan to offer 50% of bankrupt OAO Volgotanker to OAO Rosneft Oil Co., Interfax News reports citing Boris Ardalin, Samara's acting Transport, Communications and Highway Minister. Mr. Ardalin told Interfax that Rosneft may acquire the government's 20% stake in Volgotanker as well as the shares that will be offered during the company's bankruptcy process. "We think that we need to sell 50% of the shipping company to a company that needs such a carrier," Mr. Ardalin told Interfax. "Selling the shares to Rosneft will resolve problems connected with reviving the fleet and modernizing the enterprise. This is why we will ask Rosneft management to discuss this possibility." Mr. Ardalin added that Alexander Volzhanin, Volgotanker's supervisory manager, has agreed with the planned stake sale. As reported in the TCR-Europe on Aug. 14, 2007, the Moscow Arbitration Court commenced bankruptcy proceedings against OAO Volgotanker after upholding a EUR3.34 billion tax claim by the Russian Federal Tax Service, and appointed Mr. Volzhanin as supervisory manager. The Federal Tax Service filed tax claims against Volgotanker in 2004 after finding that that company illegally refunded export VAT from the budget, Kommersant relates. According to the report, the tax service filed a RUR4 billion claim for unpaid taxes in 2001 to 2005. The tax service also filed two criminal cases against Volgotanker and had three executives added to the international wanted list. Volgotanker suspended its operations in 2006 after the tax service seized 353 vessels from Volgotanker's fleet in 2005. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://www.rosneft.com/-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus, and the Arctic regions of Russia. About Volgotanker Headquartered in Samara, Russia, OAO Volgotanker -- http://www.volgotanker.com/-- specializes in the transportation of oil and petroleum products via Europe's inland-waterway system. Lloyds List says the company's fleet of 160 tankers, 57 oil-bulk-ore carriers and more than 100 barges and tugs have been under arrest since August 2005. ZENIT CJSC: Creditors Must File Claims by Sept. 25 -------------------------------------------------- Creditors of CJSC Zenit have until Sept. 25 to submit proofs of claim to: S. Zelenchenkov Insolvency Manager Office 24 Lenina Pr. 64 Volzhskiy 404110 Volgograd Russia The Arbitration Court of Stavropol commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A63-2305/2002-S5. The Court is located at: The Arbitration Court of Stavropol Mira Str. 4586 Stavropol Russia The Debtor can be reached at: CJSC Zenit Pushkina Str. 33 Mineralnye Vody Stavropol Russia ========= S P A I N ========= ANIXTER INT'L: Promotes Two Officers to Executive Positions ----------------------------------------------------------- Anixter International Inc. has promoted Robert Eck to the newly created position of Executive Vice President -- Chief Operating Officer and Dennis Letham to Executive Vice President -- Finance and Chief Financial Officer position. Mr. Eck has been with the company's operating subsidiary, Anixter Inc., for 17 years in a variety of staff and commercial positions. His most recent position, held since 2004, was Executive Vice President -- Enterprise Cabling and Security Solutions. In this role Eck has overseen annual sales growth specific to this end market of approximately 16 percent, including significant growth from our initiative to develop our security products business. Previous key positions include Senior Vice President -- Physical Security Products and Integrated Supply and Senior Vice President -- Integrated Supply Solutions. Mr. Letham has been with Anixter for the past 14 years and has served as Senior Vice President -- Finance and Chief Financial Officer for the past 12 years. During this time he has overseen the finance, accounting, tax, internal audit and legal activities of the company. Commenting on these appointments, Robert Grubbs, President and Chief Executive Officer, said, "The creation of the Chief Operating Officer position is a result of the Company's rapid growth over the past few years. We feel Bob Eck's strong track record at Anixter has proven that he possesses the qualities and experience necessary to support our continued success. Over the past year, Mr. Letham has taken on added responsibilities outside of the finance and accounting areas, most notably in human resources. His promotion reflects the added duties he has assumed." Sam Zell, Chairman of the Board, said, "Over the past four years sales at Anixter have more than doubled. Included in this growth has been a series of acquisitions in the North American and European OEM Supply marketplace, which now generates in excess of US$1 billion in annual sales for the company. This rapid growth and diversification of end markets has brought new organizational challenges and complexity. These executive management changes reflect the Board's desire to ensure there is sufficient depth and breadth to the management team in order for the Company to continue to execute effectively on all of its growth strategies." About Anixter Anixter International Inc. (NYSE: AXE) -- http://www.anixter.com/-- through its subsidiaries, distributes communications and specialty wire and cable products, fasteners, and small parts in the United States and internationally. Its communications products include voice, data, video, and security products used to connect personal computers, peripheral equipment, mainframe equipment, security equipment, and various networks to each other. The company has nearly US$725 million in inventory of more than 325,000 products, logistics network of 197 warehouses with more than 5 million square feet of space. It has operations in Latin American countries including Mexico, Costa Rica, Brazil and Chile. Its Asia-Pacific operations are located in Indonesia, Australia, China, Hong Kong, India, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, and Thailand. It also operates in Europe, particularly in Spain, France and the United Kingdom. * * * Anixter International Inc. carries Moody's Investors Service's Ba2 corporate family rating. Anixter Inc.'s US$200 million guaranteed senior unsecured notes and its 3.25% LYON's notes carry Moody's Ba1 and B1 ratings, respectively. Moody's said the rating outlook is stable. Anixter International Inc. carries Fitch's 'BB+' Issuer Default, senior unsecured notes and senior unsecured bank credit facility Ratings. Similarly, Anixter Inc. carries Fitch's 'BB+' issuer default rating and 'BB-' senior unsecured debt rating. Fitch's action affects about US$700 million of public debt securities. Fitch said the rating outlook is stable. GENERAL CABLE: Inks US$735-Mln Purchase Deal w/ Freeport-McMoran ---------------------------------------------------------------- General Cable Corporation has agreed to acquire the global wire and cable business of Freeport-McMoRan Copper & Gold Inc., which operates as Phelps Dodge International Corporation (PDIC). PDIC was acquired by Freeport as part of the acquisition of Phelps Dodge Corporation in March 2007. The purchase price is approximately US$735 million, subject to adjustment as provided in the Stock Purchase Agreement. In addition to utilizing its available cash, the Company has secured commitments from Merrill Lynch Capital Corporation to provide an increased secured revolving line of credit and an additional secured interim loan necessary to fund the purchase price. On an annual basis, General Cable estimates that the acquisition will contribute approximately US$1.4 billion in revenues at current metal prices and is expected to be accretive to earnings in the first full year by US$0.20 to US$0.30 cents per share based upon 2006 results. The combined companies expect to derive additional benefits over time through cross-selling opportunities, logistics and purchasing synergies, and the implementation of best practices throughout the entire organization. PDIC's performance in the first half of 2007 continued to trend positively. Key Strategic Rationale The acquisition offers General Cable an opportunity to further enhance its global scale and worldwide leadership in the wire and cable industry with critical mass in many emerging markets. PDIC brings a number of very positive characteristics, including: -- Complementary geographic coverage focused on energy infrastructure, construction and industrial cables serving emerging and faster growing markets in Latin America, sub-Saharan Africa, Southeast Asia, as well as India and China. Experienced management team doing business in 45 countries around the world. -- Demonstrated expertise in aerial and buried high-voltage transmission systems. -- Addition of a well-recognized, highly respected brand in the wire and cable industry with more than 50 years of history. -- Shared business philosophies of safety, Lean manufacturing, and a "One Company" approach to internal operations and customers. -- Accretive in year one with significant upside potential. "The acquisition of PDIC is truly a unique opportunity, greatly accelerating our initiative to expand into many of the faster growing emerging economies of the world," said Gregory B. Kenny, President and Chief Executive Officer of General Cable. "We are effectively merging one company principally concentrated in North America, Western Europe and Oceania with one focused in Latin America, sub-Saharan Africa and Southeast Asia. In addition, PDIC shares many of the same philosophies that have defined General Cable over the years which include an emphasis on safety, Lean manufacturing, strong operating systems and a "One Company" approach to internal operations and customers. PDIC has an experienced and disciplined management team led by Mathias Sandoval, President of Phelps Dodge International Corporation," Mr. Kenny continued. "Mr. Sandoval has spent 24 years with PDIC and has developed a reputation for operating effectively in multiple cultures. His strong and sustaining global vision has underpinned superior operating results and exceptional asset utilization. We are delighted that Mr. Sandoval has agreed to continue to lead the PDIC organization post-acquisition, as well as assume additional operating responsibility for certain existing General Cable assets. Mathias' skills will complement the General Cable senior management team who have successfully expanded the geographic footprint and served markets of the Company over the last ten years. We also believe there is an opportunity to utilize capacity within the PDIC organization to support our recent expansion into new markets, utilizing less capital than previously contemplated," Mr. Kenny said. PDIC has manufacturing and distribution facilities around the world with leading market positions in South and Central America, Africa and Southeast Asia. PDIC has approximately 3,000 employees. In addition to 10 majority-owned manufacturing and numerous distribution facilities, PDIC also has equity positions in wire and cable companies in China, Hong Kong, and the Philippines. For the year ended December 31, 2006, PDIC reported revenues of approximately US$1.2 billion and operating earnings of approximately US$77 million. In the first six months of 2007, PDIC's operating performance continued to strengthen as did its revenue base. PDIC has little geographic overlap with General Cable. Sales are primarily focused on energy products for utility, industrial and construction applications. Additionally, PDIC has copper and aluminum rod mills on three continents, a source of competitive advantage in developing regions. Just over half of PDIC's revenues are generated from manufacturing assets located in South and Central America, where leading market positions are held and where General Cable has a minor presence. PDIC brings over US$200 million of revenues in sub-Saharan Africa, where General Cable participates on a much smaller scale. PDIC is a leader in Southeast Asia and India with positions that nicely complement General Cable's current activities in India, China and Oceania. As well, PDIC has equity investments in two companies serving the Chinese energy cable market as well as one in the Philippines. PDIC also has well developed global sales channels for its energy infrastructure products made in Thailand and South America. Based on reported 2006 sales of US$4.8 billion, the combined companies would have approximately 44% of revenues in North America, 27% in Europe and the Middle East, 15% in South and Central America, and 14% in Africa/Asia Pacific. Transaction Details Under the terms of the transaction, which has been unanimously approved by General Cable's Board of Directors, General Cable will acquire 100% of the shares held by Freeport and its subsidiaries in the various entities comprising Freeport's wire and cable business. The purchase price is subject to adjustment to take into account the net effect of any dividends and other distributions made from, and capital contributions made to, the entities being acquired from March 31, 2007. In addition, as part of the transaction, General Cable will be assigned the rights in the "Phelps Dodge International Corporation" and "PDIC" brands well known in the wire and cable industry. Subject to the satisfaction of customary closing conditions and the receipt of clearances or waivers from competition and regulatory authorities in relevant jurisdictions, the transaction is expected to close during the fourth quarter of 2007. Merrill Lynch & Co. acted as exclusive financial advisor and provided a fairness opinion to General Cable in connection with the transaction. Blank Rome LLP and Norton Rose LLP served as General Cable's external legal counsel. Third Quarter Update "The markets are behaving approximately as we anticipated with telecommunications and housing related cable demand remaining soft, offset by energy infrastructure requirements and the continued benefits of our Lean manufacturing initiatives. We continue to expect revenues of approximately US$1.1 billion for the third quarter and earnings of US$0.85 to US$0.90 per share, consistent with our previous guidance," Mr. Kenny concluded. About Freeport-McMoRan Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) -- http://www.fcx.com/-- is an international mining industry leader based in North America with large, long-lived, geographically diverse assets and significant proven and probable reserves of copper, gold and molybdenum. Freeport- McMoRan has one of the most dynamic portfolios of operating, expansion and growth projects in the copper mining industry. The Grasberg mine in Indonesia, the world's largest copper and gold mine in terms of reserves, is the company's key asset. Freeport-McMoRan also operates significant mining operations in North and South America and is developing the world-class Tenke Fungurume project in the Democratic Republic of Congo. The completion of Freeport-McMoran's acquisition further expands the company's global operations. The former Phelps Dodge Corp. has mining operations in Chile, Peru, Colombia, Venezuela and Ecuador, among others. About General Cable Corporation Headquartered in Highland Heights, Kentucky, General Cable Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes aluminum, copper, and fiber-optic wire and cable products. It has three operating segments: industrial and specialty (wire and cable products conduct electrical current for industrial and commercial power and control applications); energy (cables used for low-, medium- and high-voltage power distribution and power transmission products); and communications (wire for low-voltage signals for voice, data, video, and control applications). Brand names include Carol and Brand Rex. It also produces power cables, automotive wire, mining cables, and custom-designed cables for medical equipment and other products. General Cable has locations in China, Australia, France, Brazil, the Dominican Republic and Spain. * * * As reported in the Troubled Company Reporter on March 13, 2007, Moody's Investors Service assigned a rating of B1 to the US$325 million senior unsecured notes of General Cable Corporation consisting of US$125 million of floating rate notes and US$200 million fixed rate notes. Concurrently, Moody's affirmed all other ratings for this issuer. Moody's said the rating outlook is stable. IM CAJAMAR: Moody's Junks EUR15 Million Series E Notes ------------------------------------------------------ Moody's Investors Service assigned these definitive ratings to five series of Bonos de Titulizacion de Activos to be issued by IM Cajamar 5 Fondo de Titulizacion de Activos, a Spanish asset securitisation fund that has been created by Intermoney, S.G.F.T., S.A.: -- Aaa to the EUR962 million Series A notes; -- Aa2 to the EUR11.5 million Series B notes; -- A2 to the EUR12 million Series C notes; -- Baa3 to the EUR14.5 million Series D notes; and -- C to the EUR15 million Series E notes. The ratings address the expected loss posed to investors by the legal final maturity (June 22, 2050). In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal on Series A, B, C and D at par, on or before the final legal maturity date and for ultimate payment of interest and principal at par on or before the final legal maturity date on Series E. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. As of August 2007, the portfolio comprised 9,755 loans, representing a provisional portfolio of EUR1,138,514,061.84. The loans are first-lien mortgages granted by Cajamar Caja Rural, Sociedad Cooperativa de Credito to individuals resident in Spain for the acquisition or refurbishment of residential homes located in Spain. All the properties on which the mortgage security has been granted are covered by a damage insurance policy. Geographically, the pool is concentrated in the regions of Andalusia (47.36%) and Murcia (25.47%). The loans have been originated between 1995 and August 2006, with a weighted average seasoning of 1.38 years and a weighted average remaining term of 25 years. The longest loan matures in May 2047. The original weighted average LTV was 68.22%, the current weighted average LTV is 64.95%. According to Moody's, this deal benefits from several strong features, including: (1) Basis Interest Rate Swap provided by Cajamar; (2) a reserve fund that is fully funded upfront from Series E issuance, to cover a potential cash flow shortfalls; (3) a 12-month artificial write-off mechanism which allows excess spread provisioning; and (4) the fact that all loans are secured by a first-lien mortgage guarantee. Weaker features include: (1) some mortgages belong to products offered by Cajamar that allow the option of a reduction in their margin if additional products are taken by the debtor; (2) there are caps on 98.93% of the pool (the cap is fixed at 15% for 97.76% of the portfolio and this risk is mitigated by the swap); (3) the deferral of interest payments on each of Series B and C which increases the expected loss on these subordinated series; and (4) pro-rata amortization of the B and C series of notes which leads to reduced credit enhancement of the senior series in absolute terms. These issues have all been reflected in Moody's Credit Enhancement calculation. Moody's bases its ratings on: (1) an evaluation of the underlying portfolio of mortgage loans securing the structure; and on (2) the transaction's structural protections, which include the subordination, the strength of the cash flows (including the reserve fund) and excess spread available to cover losses. IM CAJAMAR 5: Fitch Junks EUR15 Million Class E Notes ----------------------------------------------------- Fitch Ratings has assigned expected ratings to IM Cajamar 5, Fondo de Titulizacion de Activos' notes totaling EUR1.015 billion due in June 2050: -- EUR962 million Class A: 'AAA'; Outlook Stable -- EUR11.5 million Class B: 'AA'; Outlook Stable -- EUR12 million Class C: 'A'; Outlook Stable -- EUR14.5 million Class D: 'BBB'; Outlook Stable -- EUR15 million Class E: 'CCC'; Outlook Stable The final ratings are contingent upon the receipt of final documents conforming to information already received. This transaction is a cash-flow securitization of a EUR1 billion static pool of residential mortgage loans granted by Caja Rural Intermediterranea Sociedad Cooperativa de Credito ('A'/ Outlook Stable/'F1'). The expected ratings are based on the quality of the collateral, the underwriting and servicing of the mortgage loans, available credit enhancement, the integrity of the transaction's legal and financial structure and InterMoney Titulizacion S.G.F.T, S.A's administrative capabilities Initial CE for the Class A to D notes is provided by subordination and a reserve fund, which will be funded at closing using the proceeds of the Class E notes. The Class E notes are uncollateralized but will benefit from cash released from the amortization of the reserve fund. The expected ratings address the payment of interest on the notes according to the terms and conditions of the documentation, subject to a deferral trigger on the Class B, Class C and Class D, as well as the repayment of principal at legal final maturity. Should the deferral trigger on the Class B, C and D notes be hit, interest on these notes will be deferred in the priority of payments. In this instance, interest payments might not be received for a period of time, but will be received by legal final maturity. The fund will be regulated by Spanish Securitisation Law 19/1992 and Royal Decree 926/1998. Its sole purpose will be to convert mortgage transmission certificates (certificados de transmision de hipotecas or CTHs) from the seller into fixed-income securities. The fund will be legally represented and managed by InterMoney Titulizacion S.G.F.T, S.A, a limited liability company incorporated under Spanish law, whose activities are limited to the management of securitization funds. =========== S W E D E N =========== BOMBARDIER INC: Supports Transport Canada Directive for Q400 ------------------------------------------------------------ Transport Canada issued an Airworthiness Directive applicable to Bombardier Inc.'s Q400 turboprop aircraft following two recent incidents of right main landing gear collapse. Bombardier has been working closely with safety and regulatory authorities to establish a proactive course of action to ensure a high level of safety is maintained. The AD, effective immediately, requires the operators to implement these corrective actions: * All Q400 aircraft operators must conduct a general visual inspection of the left and right main landing gear system and main landing gear retract actuator jam nut. This applies to all Q400 aircraft. * A detailed visual inspection of the main landing gear retract actuator be immediately conducted on actuators that have accumulated 8,000 or more landings, or been in service for more than four years since new, whichever comes first. Bombardier estimates that this affects approximately 85 Q400 aircraft. Newer actuators will also be inspected with varying timelines depending on the age of the actuator. “We understand that this proactive measure will unfortunately inconvenience many of our customers and their passengers. However, safety remains our primary concern. We are working diligently with our customers to ensure the affected aircraft return to revenue service as quickly as possible,” said Steven Ridolfi, President, Bombardier Regional Aircraft. Bombardier has sent two separate air safety teams to the sites of the two recent incidents to assist in the investigations involving the Q400 aircraft operated by SAS. The first incident occurred at Aalborg, Denmark on Sept. 9, 2007. The second incident occurred on September 12, 2007 at Vilnius, Lithuania. As a precautionary measure, Bombardier and Goodrich, the landing gear manufacturer, recommend in an All Operator Message (AOM) that operators of Q400 aircraft having accumulated more than 10,000 landing gear cycles (a cycle is one take-off and landing), be grounded until an inspection of the landing gear is carried out. Bombardier has delivered more than 160 Q400 aircraft to airlines around the world, of these there are currently about 60 Q400 aircraft with more than 10,000 landing gear cycles. Transport Canada (TC) has been briefed on these recent events and Bombardier is working with TC to establish the requirement for further corrective actions, if required. A Bombardier Air Safety representative has been dispatched to the second incident site to provide assistance to the investigating authorities. Until such time as investigations are concluded by the relevant aviation authorities, Bombardier cannot speculate or comment as to the cause of these incidents. Bombardier continues to provide its support to the investigations being conducted by the Danish and Canadian regulatory authorities. Until such time as investigations are concluded by the relevant aviation authorities, Bombardier cannot speculate or comment as to the cause of these incidents. About Bombardier Bombardier Inc. -- http://www.bombardier.com/-- (TSE:BBD.B) manufactures innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, systems and services. Headquartered in Canada, the company also has offices in the U.S., Northern Ireland, United Kingdom, Germany, Switzerland, Sweden, Austria, and Australia. * * * As reported in the TCR-Europe on May 24, 2007, Standard & Poor's Ratings Services revised the outlook on Montreal, Quebec-based Bombardier Inc. to stable from negative. At the same time, the ratings, including the 'BB' long-term corporate credit rating on Bombardier, were affirmed. VIRANATIVE AB: Files for Bankruptcy Protection in Sweden -------------------------------------------------------- ViraNative AB, a wholly owned subsidiary of Viragen International, Inc., applied for bankruptcy proceedings in the District Court of Umea under the bankruptcy laws of Sweden. The company cited its inability to pay taxes and other debts. The bankruptcy court has appointed Anders Bergman of Ackordscentralen Norrland AB as bankruptcy administrator for ViraNative. Mr. Bergman will: -- inventory of the Debtor's assets; -- identify creditors and the amount of their claims; -- seek to identify purchasers for the Debtor's assets; and -- process their orderly liquidation and sale in accordance with Swedish laws. While Viragen, Inc. continues to seek new sources of working capital to fund its operations, and the operations of Viragen International, Inc., the Companies do not intend to fund further operations of ViraNative during the bankruptcy process. Therefore, ViraNative's operations may be disrupted or halted. Viragen, Inc. and Viragen International, Inc. are monitoring the bankruptcy proceedings but at this stage cannot predict what impact the proceedings may have on their respective operations. About Viragen International, Inc.: Viragen International, Inc. is a majority-owned subsidiary of Viragen, Inc., and operates through its wholly- owned subsidiary, Viragen (Scotland) Limited, located near Edinburgh, Scotland. Viragen Scotland is engaged in the research and development of novel therapeutic proteins that disrupt the advance of life-threatening diseases, with a focus on cancers. About ViraNative AB Headquartered in Umea, Sweden, ViraNative AB manufactures Multiferon(R), a multi-subtype, human alpha interferon. The company's bankruptcy proceeding is docketed under Case Number K1767-07. ===================== S W I T Z E R L A N D ===================== EINHELL HOLDING: Creditors' Liquidation Claims Due September 30 --------------------------------------------------------------- Creditors of JSC Einhell Holding have until Sept. 30 to submit their claims to: Rainer Koch Liquidator St. Gallerstrasse 182 8404 Winterthur ZH Switzerland The Debtor can be reached at: JSC Einhell Holding Winterthur ZH Switzerland ERMA IMMOBILIEN: Creditors' Liquidation Claims Due October 4 ------------------------------------------------------------ Creditors of JSC Erma Immobilien have until Oct. 4 to submit their claims to: Eva Luthi Liquidator Drovettisbergstr. 19 8272 Ermatingen Kreuzlingen TG Switzerland The Debtor can be reached at: JSC Erma Immobilien Kreuzlingen Switzerland FIRST ASSET: Creditors' Liquidation Claims Due September 24 ----------------------------------------------------------- Creditors of JSC First Asset Management have until Sept. 24 to submit their claims to: JSC Refundus Liquidator Badenerstrasse 567 8048 Zurich Switzerland The Debtor can be reached at: JSC First Asset Management Zurich Switzerland GIGALOAD LLC: Creditors' Liquidation Claims Due September 24 ------------------------------------------------------------ Creditors of LLC gigaload have until Sept. 24 to submit their claims to: A. Wettstein & Co. Liquidator Gartenstrasse 33 8027 Zurich Switzerland The Debtor can be reached at: LLC gigaload Baar ZG Switzerland LAZARD LTD: Opens Zurich Office; Rolf Bachmann to Lead Swiss Biz ---------------------------------------------------------------- Lazard Ltd is opening an office in Zurich as part of the firm's strategy to expand its global Financial Advisory business. Lazard has hired former McKinsey & Co. Partner Rolf Bachmann as a Managing Director to lead the firm's Swiss investment banking business. "The Zurich office will enable us to expand our financial advisory services to the Swiss market, where Lazard already has established corporate relationships," said Georges Ralli, Chief Executive of Lazard European Investment Banking. "The combination of Rolf Bachmann's Swiss corporate advisory experience and relationships with Lazard's network in Europe and worldwide, puts us in an excellent position to do so." Mr. Bachmann joins Lazard after fifteen years with McKinsey in Zurich. A Partner since 1999, he led client service teams for several key McKinsey clients. Mr. Bachmann's specialty is providing strategic advice to corporations related to mergers, acquisitions and divestitures. He studied economics and earned a PhD in banking at Zurich University. The opening of the Swiss office is the latest step in Lazard's commitment to invest in its European Financial Advisory business. In early September, Lazard announced plans to hire Ken Costa, formerly of UBS, to serve as Chairman of Lazard International and to lead investment banking for the UK alongside London CEO William Rucker. The firm recently signed a cooperation agreement with Raiffeisen Investment, the M&A advisory business for Austria's largest banking group, strengthening Lazard's footprint across Russia, Central and Eastern Europe. Lazard Ltd. (NYSE:LAZ) -- http://www.lazard.com/-- is a preeminent financial advisory and asset management firms, that operates from 32 cities across 16 countries in North America, Europe, Asia, Australia and South America. With origins dating back to 1848, the firm provides advice on mergers and acquisitions, restructuring and capital raising, well as asset management services to corporations, partnerships, institutions, governments, and individuals. The company has locations in Australia, Brazil, China, France, Germany, India, Japan, Korea and Singapore. The company reported total assets of US$2.6 billion, total liabilities of US$2.8 billion, and minority interest at US$55.7 million, resulting in a total stockholders' deficit of US$206.8 million as of March 31, 2007. NOVATEX TRADING: Creditors' Liquidation Claims Due September 27 --------------------------------------------------------------- Creditors of JSC Novatex Trading have until Sept. 27 to submit their claims to: JSC Risk-Consult Liquidator Poststrasse 22 6300 Zug Switzerland The Debtor can be reached at: JSC Novatex Trading Baar ZG Switzerland NURHAK LLC: Creditors' Liquidation Claims Due September 27 ---------------------------------------------------------- Creditors of LLC Nurhak have until Sept. 27 to submit their claims to: Ali Yildiz Liquidator Dornacherstrasse 252 4053 Basel BS Switzerland The Debtor can be reached at: LLC Nurhak Basel BS Switzerland PRIME FORESTRY: Creditors' Liquidation Claims Due October 31 ------------------------------------------------------------ Creditors of JSC Prime Forestry have until Oct. 31 to submit their claims to: Yves Meili Liquidator Wenger Plattner Rechtsanwalte Goldbach-Center Seestrasse 39 8700 Kusnacht ZH Switzerland The Debtor can be reached at: JSC Prime Forestry Zurich Switzerland RASEN & GARTEN LLC: Creditors' Liquidation Claims Due Sept. 26 -------------------------------------------------------------- Creditors of LLC Rasen & Garten have until Sept. 26 to submit their claims to: Olivier-J. Moulin Liquidator Tellenmattstrasse 23 6317 Oberwil bei Zug Switzerland The Debtor can be reached at: LLC Rasen & Garten Zug Switzerland STILLCLOUD JSC: Creditors' Liquidation Claims Due September 28 -------------------------------------------------------------- Creditors of JSC Stillcloud have until Sept. 28 to submit their claims to: Peter R. Altenburger Liquidator Seestrasse 39 8700 Kusnacht ZH Switzerland The Debtor can be reached at: JSC Stillcloud Kusnacht ZH Switzerland V-CONSULTING JSC: Creditors' Liquidation Claims Due September 24 ---------------------------------------------------------------- Creditors of JSC V-Consulting have until Sept. 24 to submit their claims to: Guido Schwerzmann Liquidator Landweg 2 6052 Hergiswil NW Switzerland The Debtor can be reached at: JSC V-Consulting Hergiswil NW Switzerland ============= U K R A I N E ============= AGROCENTRMET LLC: Creditors Must File Claims by September 18 ------------------------------------------------------------ Creditors of LLC Agrocentrmet (code EDRPOU 34319271) have until Sept. 18 to submit their proofs of claim to: Michael Tsurika Liquidator Apartment 41 General Karpenko Str. 2/1 54038 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 5/634/07. The Court is located at: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine ALKOPROM CJSC: Claims Submission Deadline Set September 18 ---------------------------------------------------------- Creditors of CJSC Alkoprom (code EDRPOU 24394920) have until Sept. 18 to submit their proofs of claim to: The Economic Court of Poltava Zigin Str. 1 36000 Poltava Ukraine The Economic Court of Poltava commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 4/70. The Debtor can be reached at: CJSC Alkoprom Quarter 101 b. 3 Kremenchuk Poltava Ukraine MECHANICAL FOUNDATION: Creditors Must File Claims by Sept. 18 ------------------------------------------------------------- Creditors of LLC Mechanical Foundation Building (code EDRPOU 33410615) have until Sept. 18 to submit their proofs of claim to: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B-48/107-07. The Debtor can be reached at: LLC Mechanical Foundation Building Apartment 42 Traktorostroiteley Avenue 92-a 61112 Kharkov Ukraine MRIYA LLC: Creditors Must File Claims by September 18 ----------------------------------------------------- Creditors of LLC Mriya (code EDRPOU 30671265) have until Sept. 18 to submit their proofs of claim to: Sergey Kosenko Liquidator Voenny Avenue 6, c. 1 73000 Herson Ukraine The Economic Court of Herson commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 5/102-B-07. The Court is located at: The Economic Court of Herson Gorkiy Str. 18 73000 Herson Ukraine The Debtor can be reached at: LLC Mriya Novogrigorovka Genichesk District Herson Ukraine SADOVOE OJSC: Creditors Must File Claims by September 18 -------------------------------------------------------- Creditors of OJSC Sadovoe (code EDRPOU 00414109) have until Sept. 18 to submit their proofs of claim to: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 5/538/06. The Debtor can be reached at: OJSC Sadovoe Kvitneve, Mir Str. 1 Zhovtneve District Nikolaev Ukraine SAMSON LLC: Creditors Must File Claims by September 18 ------------------------------------------------------ Creditors of LLC Samson (code EDRPOU 31167931) have until Sept. 18 to submit their proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 49/177-b. The Debtor can be reached at: LLC Samson Apartment 33 Irpen Str. 64 Kiev Ukraine SELECTION OJSC: Claims Submission Deadline Set September 18 ----------------------------------------------------------- Creditors of OJSC Selection (code EDRPOU 00699477) have until Sept. 18 to submit their proofs of claim to: The Economic Court of Ivano-Frankovsk Shevchenko Str. 16a 76000 Ivano-Frankovsk Ukraine The Economic Court of Ivano-Frankovsk commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. B-21/58. The Debtor can be reached at: OJSC Selection Kolomiysky District Independency Str. 4a Gody-Dobrovodka Ivano-Frankovsk Ukraine STATEK LTD: Creditors Must File Claims by September 18 ------------------------------------------------------ Creditors of LLC Statek Ltd. (code EDRPOU 34510906) have until Sept. 18 to submit their proofs of claim to: Michael Tsurika Liquidator Apartment 41 General Karpenko Str. 2/1 54038 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 5/633/07. The Court is located at: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Debtor can be reached at: LLC Statek Ltd. Apartment 41 General Karpenko Str. 2/1 54038 Nikolaev Ukraine SPUTNIKI LLC: Creditors Must File Claims by September 18 -------------------------------------------------------- Creditors of LLC Firms Sputniki (code EDRPOU 20530763) have until Sept. 18 to submit their proofs of claim to: The Economic Court of Ivano-Frankovsk Shevchenko Str. 16a 76000 Ivano-Frankovsk Ukraine The Economic Court of Ivano-Frankovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B-21/127. The Debtor can be reached at: LLC Firms Sputniki Independency Str. 67/206 76018 Ivano-Frankovsk Ukraine UKRAINE LLC: Creditors Must File Claims by September 18 ------------------------------------------------------- Creditors of Agricultural LLC Ukraine (code EDRPOU 03763974) have until Sept. 18 to submit their proofs of claim to: Irina Zakharchenko Liquidator Apartment 53 October Lane 325/4 54052 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 5/42/06. The Court is located at: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Debtor can be reached at: Agricultural LLC Ukraine 50 Years of October Str. 71 Kamianka Ochakov District Nikolaev Ukraine * S&P Rates City of Odessa Long-term Issuer Credit at B+ -------------------------------------------------------- Standard & Poor's Ratings Services had assigned its 'B+' long- term issuer credit and 'uaA' Ukraine national scale ratings to the Ukrainian City of Odessa. The outlook is stable. "The ratings on Odessa reflect the city's limited fiscal flexibility arising from central government controls," said Standard & Poor's credit analyst Boris Kopeykin. "The ratings also reflect significant expenditure pressures due to increasing salaries and infrastructure needs, low wealth levels, and Odessa's poor credit history and future debt accumulation plans. That said, the ratings are supported by the city's dynamic economy, consequent rapid growth in budget revenues, and limited flexibility in asset sales." Odessa's position as the economic and logistics center for the south of Ukraine, with its rapidly developing economy and growth in transfers, supports budget revenue growth, although wealth levels remain low in a Central and East European context with an average salary of US$200 per month. Odessa is expected to receive more than UAH2 billion in revenues in 2007, about 46% more than in 2006 (itself a year in which total revenues grew 55%). The value of the city's real estate and land for sale for the next few years is more than US$1 billion (UAH5 billion) and will further support revenue growth. Standard & Poor's expects that Odessa's debt accumulation to address infrastructure needs will be gradual after the use of multilaterals' loans expected in 2008 and beyond. We also expect that foreign exchange risks will remain under control with no new large issues or loans with bullet repayments. "Continued economic growth, resulting in growing revenues and a consequential improvement in financial performance, with operating balances at or above 10%, would be positive for the city's creditworthiness," added Mr. Kopeykin. "Conversely, increased risks related to debt service, combined with weaker revenue growth and a consequential deterioration in financial performance, with operating balances closer to 0%, could pressure the ratings." =========================== U N I T E D K I N G D O M =========================== ACORDIS UK: Calls In Liquidators from Deloitte & Touche ------------------------------------------------------- Neville Barry Kahn and Ian Brown of Deloitte & Touche LLP were appointed joint liquidators of Acordis U.K. Ltd. on Aug. 10 for the creditors' voluntary winding-up procedure. The joint liquidators can be reached at: Deloitte & Touche LLP 1 City Square Leeds West Yorkshire LS1 2AL England ARTHUR HENRIQUES: J. M. Titley Leads Liquidation Procedure ---------------------------------------------------------- J. M. Titley of DTE Leonard Curtis was appointed liquidator of Arthur Henriques Ltd. on Aug. 14 for the creditors' voluntary winding-up procedure. The liquidator can be reached at: DTE Leonard Curtis DTE House Hollins Mount Bury Lancs BL9 8AT England ASSET LOFT: Claims Filing Period Ends September 28 -------------------------------------------------- Creditors of Asset Loft Conversions Ltd. have until Sept. 28 to send their full names, their addresses and descriptions, full particulars of their debts and claims, and names and addresses of their solicitors (if any) to: Steven P. Ross Joint Liquidator Tenon Recovery Tenon House Ferryboat Lane Sunderland Tyne and Wear SR5 3JN England Steven Philip Ross and Ian William Kings of Tenon Recovery were appointed joint liquidators of the company on Sept. 5 for the creditors' voluntary winding-up proceeding. AXON FINANCIAL: Fitch Cuts US$890 Mln Notes’ Ratings to BB- ------------------------------------------------------------ Fitch has downgraded Axon Financial Funding Ltd's US$890 million of mezzanine notes to 'BB-' from 'AA-'. These notes remain on Rating Watch Negative. In addition the following program of Axon Financial and Axon Financial Funding LLC are placed on Rating Watch Negative: US commercial paper: 'F1+' US medium-term note: 'AAA' Euro CP: 'F1+' Euro MTN: 'AAA' The RWN affects approximately $2.7 billion of US CP, $2.1 billion of Euro CP, $6.3 billion of US MTNs and $25 million of Euro MTNs. Axon Financial is a structured investment vehicle managed by Axon Financial Services Ltd, which takes leveraged credit risk by investing in a diversified portfolio of highly rated assets through issuing a mix of CP, MTNs, mezzanine notes and capital notes. The rating action on the mezzanine notes and the RWN on the senior and mezzanine notes reflects: -- the continuing challenges of Axon Financial to access the CP and MTN markets to refinance maturing debt.; -- the fact that Axon Financial is in a Restricted Investment Operating State; -- the accumulating losses realised from the continued sale of assets to meet maturing debt; -- the continued deterioration in the net asset value (NAV) of capital and mezzanine notes,which now stands at 57%. -- the increased likelihood of entering into a Restricted Funding Operating State. Restricted funding operating state could be triggered if the NAV of capital and mezzanine notes fell below 50% of their notional amount. While in the Restricted Funding Operating State Axon Financial would not be permitted to issue further senior notes, and would have to sell assets or draw upon liquidity to redeem maturing funding. The rating actions listed reflect the fact that Axon Financial has not yet been able to secure any alternative sources of funding. Consequently a sale of assets or committed liquidity draw will be required to meet maturing liabilities, which could result in further realized losses. Fitch will resolve the RWN status pending further evidence on the funding strategy for the vehicle in the next several weeks. Axon Financial's portfolio currently comprises 25% RMBS (6% prime, 17% near-prime and 1% sub-prime), 21% monoline-wrapped securities, 18% CMBS, 17% CDOs (including 9% leveraged-loan CDOs and 4% CDOs of ABS), 11% cash equivalents, 4% closed end seconds and 4% other ABS. The portfolio has a geographic exposure of 87% to the US and 13% to the UK. Currently, 96.7% of Axon Financial's portfolio is rated 'AAA' equivalent, 3% 'AA' equivalent, and 0.3% 'A' equivalent. Fitch notes the very high credit quality of the portfolio assets but, of late, some of the assets have experienced downgrades and the market values of the assets have come under extreme pressure. BASIS YIELD: U.S. Court Extends Injunction Until Nov. 19 -------------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York (Manhattan) has granted Basis Yield Alpha Fund (Master) temporary protection from lawsuits and seizure of assets by U.S. creditors while its Chapter 15 case is being assessed for a permanent injunction, Bloomberg News reported. Basis Yield, which is being liquidated in the Grand Court of the Cayman Islands, where it is registered, had filed for Chapter 15 protection in the U.S. Court on August 29, 2007, asking to be shielded from U.S. creditors and for recognition of its main Caribbean bankruptcy proceeding. "I am not inclined to make any findings today as to whether recognition should ultimately be granted [for the Cayman filing]," U.S. Bankruptcy Judge Robert Gerber said at a Sept. 6 hearing in New York, according to Bloomberg. The U.S. Court will convene a hearing on November 19 to consider Basis Yield's request for recognition of the Caymans proceeding. Bloomberg reported that Judge Gerber had told Basis Yield attorneys to be prepared to address U.S. Bankruptcy Judge Burton Lifland's August 30 order rejecting a similar bid for recognition of a Caymans bankruptcy proceeding by two Bear Stearns Cos. hedge funds after finding that they did most of their business in the U.S. As previously reported, Basis Yield's registered office, the feeder funds, 10% of investors and all of its records are located in the Caymans. On August 29, Basis Yield's Chapter 15 case received recognition from the High Court of Justice, Chancery Division, Companies Court, in England. Under Chapter 15 of the U.S. Bankruptcy Code, a company with an insolvency filing in another country where it has a significant presence can ask U.S. courts to defer to a foreign proceeding. Representing Citigroup Global Markets Ltd., a creditor in Basis Yield's case, Lindsee Granfield, Esq., at Cleary Gottlieb Steen & Hamilton in New York, however, asserted that "it isn't clear where the fund's main interests are." Ms. Granfield added that the Court will have to determine "where are the assets and where were these funds actually operated." If Citigroup were to successfully argue that the Yield Fund's main business operations are not in the Cayman Islands but in the U.S., then Basis Yield's Chapter 15 case in the U.S. could fail, allowing U.S. creditors to file lawsuits against the fund, according to The Australian. The paper further stated that investors face losing more than 80% of their $320,000,000 total stake, based on the most recent update from Basis Capital Group. Judge Gerber said he wants "to move quickly to resolve as many issues as possible" out of fairness to Grant Thornton International, the liquidator appointed by the Cayman Islands court, according to Bloomberg. The exact assets of the fund are "undetermined," Bloomberg said. Basis Yield indicated in its Chapter 15 petition that its assets and liabilities aggregate more than $100,000,000 each. Basis Yield's assets is down from $436,000,000 at Jan. 31, 2007, according to Bloomberg data. Basis Yield Alpha Fund (Master) is a Cayman Islands mutual fund. It operates as a master-feeder structure that allows investors' funds to be channeled through two companies operating in a single jurisdiction to a "master" company operating in the same jurisdiction. These two feeder funds are Basis Yield Alpha Fund (US), a US feeder fund for US taxable investors, and Basis Yield Alpha Fund, a non-US feeder for all other investors. On Aug. 29, 2007, Hugh Dickson, Stephen John Akers, and Paul Andrew Billingham filed a chapter 15 petition for Basis Yield (Bankr. S.D.N.Y. Case No. 07-12762). Karen Dine, Esq. at Pillsbury Winthrop Shaw Pittman LLP represents the petitioners. (Basis Yield Bankruptcy News, Issue No. 3; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000). BASIS YIELD: S&P Withdraws Fund Rating After Picking Liquidators ---------------------------------------------------------------- Standard & Poor's Fund Services announced that it has withdrawn its fund rating on the Basis Yield Fund as a result of the fund's appointment of joint provisional liquidators. The Yield Fund was placed "On Hold" by S&P on July 18, 2007. The decision to place the rating "On Hold" was made after the management of Basis Capital failed to provide S&P a sufficient explanation of its June performance estimates and the subsequent announcement that the fund was suspended due to the inability tocalculate a NAV (Net Asset Value). "S&P has withdrawn its rating following the announcement that the master fund has been placed into liquidation, with representatives of Grant Thornton announced as joint provisional liquidators," said S&P fund analyst David Erdonmez. S&P understands that Grant Thornton is currently assessing the fund's financial position. S&P's "On Hold" rating of the Basis Aust Rim Opportunity Fund remains, pending the provision of additional information by the management of Basis Capital. To date, management has not advised S&P on the positioning of this fund due to legal restrictions. The funds affected by this announcement are: APIR Fund Name Rating ---- --------- ------ BCF0100AU Basis Aust Rim Opportunity Fund On Hold BCF0001AU Basis Yield Fund Withdrawn About Basis Capital Basis Yield Alpha Fund (Master) is a Cayman Islands-based mutual fund managed by Basis Capital Fund Management Ltd. in Australia. Basis Capital is fully licensed and regulated by the Australian Securities and Investment Commission as a Responsible Entity. Basis Capital is a founding member of the Australian Chapter of the Alternative Investment Management Association. Bloomberg relates Basis Capital was declared "Fund of the Year" at the 2005 AsiaHedge awards. It was also named "Skilled Manager of the Year" by Macquarie Bank Ltd. in 2004. Road to Bankruptcy Following the volatility in the market related to the United States sub-prime lending defaults, by June 2007, Basis Yield began to suffer a significant devaluation of its asset portfolio. The devaluation of the Fund's secured assets led to margin calls from trade counterparties, which Basis Yield was ultimately unable to meet. This, in turn, resulted in the issuance of several default notices by the counterparties and the exercise of their rights under their agreements to close out trades and to seize or sell Basis Yield assets that had been the subject of repurchase agreements or over which they held security interests. Default notices were issued by, inter alia, J.P. Morgan Chase Bank N.A., Goldman Sachs International, Citigroup Global Markets Limited, Morgan Stanley, Lehman Brothers International (Europe), and Merrill Lynch International. In addition, two counterparties issued bid lists for Basis Yield's assets, which resulted in additional downward pressure on the relevant asset classes and a further devaluation of the Fund's assets. Basis Yield disputed many of the default notices issued or purportedly issued by various parties. Basis Capital stopped redemptions from its Yield Alpha Fund and Aust-Rim Opportunity Fund in July 2007 after both funds lost 9% and 14% in June, Bloomberg says. Basis Capital retained The Blackstone Group to act as financial advisor to the Yield Alpha Fund and Pac-Rim Opportunity Funds. Blackstone's role included negotiating with investment banks to prevent adverse pricing and selling of both funds' assets. For the past five years, the Yield Alpha Fund returned 15.5% on average while the Aust-Rim Opportunity Fund provided almost 15% return on average, according to Bloomberg, citing a July 2007 report by Zenith Investment Partners posted on Basis Capital's Web site. Bloomberg notes that the Basis Capital funds had the highest five-star ratings from Standard & Poor's before the ranking was put "on hold" on July 17, 2007, because of "issues potentially affecting the management of the fund," according to S&P. About the Company Basis Yield Alpha Fund (Master) is a Cayman Islands mutual fund. It operates as a master-feeder structure that allows investors' funds to be channeled through two companies operating in a single jurisdiction to a "master" company operating in the same jurisdiction. These two feeder funds are Basis Yield Alpha Fund (US), a US feeder fund for US taxable investors, and Basis Yield Alpha Fund, a non-US feeder for all other investors. On Aug. 29, 2007, Hugh Dickson, Stephen John Akers, and Paul Andrew Billingham filed a chapter 15 petition for Basis Yield (Bankr. S.D.N.Y. Case No. 07-12762). Karen Dine, Esq. at Pillsbury Winthrop Shaw Pittman LLP represents the petitioners. (Basis Yield Bankruptcy News, Issue No. 3; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000). BASIS YIELD: Liquidators' Motion for Cayman Process Recognition --------------------------------------------------------------- As previously reported, Hugh Dickson, Stephen John Akers, and Paul Andrew Billingham, as joint provisional liquidators and foreign representatives of Basis Yield Alpha Fund (Master), asked the U.S. Bankruptcy Court for the Southern District of New York to recognize the Fund's liquidation proceeding before the Grand Court of the Cayman Islands as a foreign main proceeding pursuant to Section 1517 of the Bankruptcy Code. To prove that Basis Yield's center of main interests is in the Cayman Islands, U.S. counsel for the Joint Provisional Liquidators, Karen B. Dine, Esq., at Pillsbury Winthrop Shaw Pittman LLP, in New York, tells the Court that approximately 10.5% of all beneficial investors in Basis Yields are located in the Cayman Islands and as of May 31, 2007, only three countries had equal or greater concentrations of beneficial investors. In addition, beneficial investors are located in approximately 20 countries, but none are in the United States. Basis Yield's Cayman Islands investors are two feeder funds. Beneficial investors are investors in the feeder funds and, through the feeder funds, may be thought to be the final equity stakeholders in Basis Yield. Ms. Dine contends that: * Basis Yield pays significant regularly recurring fees to its investment manager, administrator, and auditor, all of whom are Cayman Island entities; * Basis Yield's agreements with its investment manager and administrator are governed by the laws of the Cayman Islands; and * Basis Yield's register of shareholders, principal books and records, and books of account are all located in the Cayman Islands. Accordingly, the Liquidators ask the U.S. Bankruptcy Court to grant their request to recognize the Fund's Cayman Islands liquidation proceeding as a foreign main proceeding. Citigroup Responds to Injunction Request As previously reported, Judge Gonzalez directed all parties-in- interest to appear at a hearing before the Honorable Robert E. Gerber in Manhattan to show why a preliminary injunction should not be granted in the Chapter 15 case. Representing Citigroup Global Markets Limited, Lindsee P. Granfield, Esq., at Cleary Gottlieb Steen & Hamilton LLP, in New York, relates that while Citigroup Global Markets does not currently object to the entry of a preliminary injunction, it reserves its rights to object to the request to recognize the main proceeding as foreign. Ms. Granfield contends that it does not appear that either the Preliminary Injunction Motion or the Chapter 15 Petition include the necessary facts to make a prima facie case for recognition of Basis Yield's Cayman liquidation proceeding as either a foreign main proceeding or a foreign non-main proceeding as defined in Section 1502. Ms. Granfield further contends that while the Petition and Preliminary Injunction Motion indicate that Basis Yield is incorporated in and regulated by the Cayman Islands, it did not provide information on whether: * Basis Yield staffed any employees or managers in the Cayman Islands; * any of Basis Yield's assets are or were located in the Cayman Islands; * the location of the majority of Basis Yield's creditors whose interests will be affected by recognition; * the location from which Basis Yield's funds were managed; or * where Basis Yield's books and records are maintained and stored. The declarations of Hugh Dickson and Sandra Corbett, filed together with the request, do not disclose the basis or factual support for their conclusion, Ms. Granfield says. According to Ms. Granfield, without factual support, neither creditors nor the Court can make any determination as to whether Basis Yield has its "center of main interests" in the Cayman Islands. Although the Liquidators filed a supplement to their request, Ms. Granfield argues that the supplement does not answer all of the factual questions that are relevant to whether recognition is proper as either a main or non-main proceeding. Citigroup wants any preliminary injunction order to be without prejudice to future objections to the Petition. About Basis Capital Basis Yield Alpha Fund (Master) is a Cayman Islands-based mutual fund managed by Basis Capital Fund Management Ltd. in Australia. Basis Capital is fully licensed and regulated by the Australian Securities and Investment Commission as a Responsible Entity. Basis Capital is a founding member of the Australian Chapter of the Alternative Investment Management Association. Bloomberg relates Basis Capital was declared "Fund of the Year" at the 2005 AsiaHedge awards. It was also named "Skilled Manager of the Year" by Macquarie Bank Ltd. in 2004. Road to Bankruptcy Following the volatility in the market related to the United States sub-prime lending defaults, by June 2007, Basis Yield began to suffer a significant devaluation of its asset portfolio. The devaluation of the Fund's secured assets led to margin calls from trade counterparties, which Basis Yield was ultimately unable to meet. This, in turn, resulted in the issuance of several default notices by the counterparties and the exercise of their rights under their agreements to close out trades and to seize or sell Basis Yield assets that had been the subject of repurchase agreements or over which they held security interests. Default notices were issued by, inter alia, J.P. Morgan Chase Bank N.A., Goldman Sachs International, Citigroup Global Markets Limited, Morgan Stanley, Lehman Brothers International (Europe), and Merrill Lynch International. In addition, two counterparties issued bid lists for Basis Yield's assets, which resulted in additional downward pressure on the relevant asset classes and a further devaluation of the Fund's assets. Basis Yield disputed many of the default notices issued or purportedly issued by various parties. Basis Capital stopped redemptions from its Yield Alpha Fund and Aust-Rim Opportunity Fund in July 2007 after both funds lost 9% and 14% in June, Bloomberg says. Basis Capital retained The Blackstone Group to act as financial advisor to the Yield Alpha Fund and Pac-Rim Opportunity Funds. Blackstone's role included negotiating with investment banks to prevent adverse pricing and selling of both funds' assets. For the past five years, the Yield Alpha Fund returned 15.5% on average while the Aust-Rim Opportunity Fund provided almost 15% return on average, according to Bloomberg, citing a July 2007 report by Zenith Investment Partners posted on Basis Capital's Web site. Bloomberg notes that the Basis Capital funds had the highest five-star ratings from Standard & Poor's before the ranking was put "on hold" on July 17, 2007, because of "issues potentially affecting the management of the fund," according to S&P. Chapter 15 Ancillary Case On August 29, 2007, the Liquidators filed a petition before the U.S. Bankruptcy Court for the Southern District of New York seeking recognition of Basis Yield's liquidation in the Cayman Islands as a "foreign main" proceeding under Chapter 15 of the U.S. Bankruptcy Code. The Liquidators also asked the U.S. Court to enjoin and restrain U.S. creditors from commencing actions with respect to the Fund's assets in the United States. Basis Yield is estimated to have more than US$100,000,000 in total assets and total liabilities, and less than 49 creditors, the Chapter 15 petition said. The Liquidators noted that in excess of US$50,000,000 of Basis Yield's assets, held by various financial institutions, are located within the United States. Basis Capital has said losses in Basis Yield could exceed 80%, Tiffany Kary and Jenny Strasburg at Bloomberg report. BERRY BIRCH: Brings In Liquidators from KPMG -------------------------------------------- Finbarr Thomas O'Connell and Jane Bronwen Moriarty of KPMG LLP were appointed joint liquidators of Berry Birch & Noble Estate Planning Ltd. (formerly Berry Birch & Noble Estates Planning Ltd. and Ever 1937 Ltd.) on Aug. 31 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: KPMG LLP 8 Salisbury Square London EC4Y 8BB England The company can be reached at: Berry Birch & Noble Estate Planning Ltd. Eaton House 1 Eaton Road Coventry CV1 2FJ England CLASSICAL PROM: Names Stephen John Tancock Liquidator ----------------------------------------------------- Stephen John Tancock of Smith & Williamson Ltd. was appointed liquidator of The Classical Prom Co. Ltd. on Sept. 6 for the creditors' voluntary winding-up procedure. The liquidator can be reached at: Smith & Williamson Ltd. First Floor 89 King Street Maidstone Kent ME14 1BG England DURA AUTOMOTIVE: Wants Court to Bless Disclosure Statement ---------------------------------------------------------- DURA Automotive Systems Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to approve the Disclosure Statement explaining the terms of the Joint Plan of Reorganization. The Debtors filed their Plan on Aug. 22, 2007. Section 1125(b) of the Bankruptcy Code requires that a plan proponent provide "adequate information" regarding its proposed plan of reorganization. Section 1125(a)(1) defines adequate information as "information of a kind, and in sufficient detail, as far as is reasonably practical in light of the nature and history of the debtor and the condition of the debtor's books and records, that would enable a hypothetical reasonable investor typical of holders of claims or interests of the relevant class to make an informed judgment about the plan." The Debtors aver that the Disclosure Statement complies with all aspects of Section 1125. Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that the Disclosure Statement is the product of the Debtors' extensive review and analysis of the circumstances leading to the Chapter 11 cases and a thorough analysis of the Plan. In drafting the Disclosure Statement, the Debtors sought the assistance and input of their financial and legal advisors, Mr. Madron tells the Court. The Debtors also sought and received comments on the Plan and Disclosure Statement from the retained professionals for the ad hoc group of certain of the Debtors' second lien prepetition secured lenders, agents to the Debtors' postpetition secured lenders, the Official Committee of Unsecured Creditors, the indenture trustee for senior notes, and backstop party Pacificor, LLC. Mr. Madron maintains that the Disclosure Statement contains the pertinent information necessary for holders of eligible claims to make an informed decision about whether to vote to accept or reject the Plan, including, among other things: * the treatment of all classes of creditors and equity interests; * a description and summary of the injunction and releases granted by the Plan; * the purpose, use, and effect of the Plan's contemplated substantive consolidation; * the Debtors' history, including certain events leading to the commencement of the Chapter 11 cases; * the operation of the Debtors' businesses and significant events during the Chapter 11 cases; * the Debtors' corporate structure and prepetition capital structure and indebtedness; * securities to be issued under the Plan; * risk factors to consider that may affect the Plan; * restructuring transactions contemplated by the Plan; * the means for implementation of the Plan; and * a disclaimer indicating that no statements or information concerning the Debtors and their assets and securities are authorized other than those set forth in the Disclosure Statement. A hearing is scheduled for Sept. 26, 2007, at which time the Court will evaluate DURA's Disclosure Statement to determine whether it contains "adequate information" to enable creditors to vote to accept the Plan. About DURA Automotive Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. The Debtors' exclusive plan-filing period expires on Sept. 30, 2007. (Dura Automotive Bankruptcy News, Issue No. 28 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Wants Court Nod on Solicitation Procedures ----------------------------------------------------------- DURA Automotive Systems Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to approve certain procedures by which they will solicit acceptances or rejections of the Plan in order to conduct an effective solicitation of acceptances or rejections of the Joint Plan of Reorganization. In accordance with Rule 3018(c) of the Federal Rules of Bankruptcy Procedure, the Debtors prepared and customized ballots for individual holders of claims in Class 3 and Class 5, and master ballots for Class 3, the only classes entitled to vote to accept or reject the Plan. Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that holders of claims in Classes 1 and 2 are unimpaired because the Plan contemplates either paying those claims in full, or rendering them unimpaired. Accordingly, Class 1 and 2 claim holders are deemed to accept the Plan pursuant to Section l126(f) of the Bankruptcy Code, and not entitled to vote. Holders of claims in Classes 4, 6, and 7 and equity interests in Class 8 are also not entitled to vote on the Plan because they will not receive any distribution on account of their claims. Those classes are therefore deemed to reject the Plan pursuant to Section l126(g), Mr. Madron says. Solicitation Procedures Within five business days after the Court approves the Disclosure Statement, Kurtzman Carson Consultants, LLC, or Financial Balloting Group will send a complete solicitation package to Holders of Class 3 Senior Notes Claims. The Solicitation Package consists of: * the Plan; * the Disclosure Statement; * the Disclosure Statement Order; * a notice on the hearing to consider confirmation of the Plan; * subscription documents for participation in the Rights Offering under the Plan; * appropriate ballot, master ballot, and voting instructions; * pre-addressed, postage pre-paid return envelope; and * appropriate letter of four customized letters from the Debtors. Kurtzman Carson is the Debtors' claims and solicitation agent. Financial Balloting will assist Kurtzman Carson as: (a) the special voting agent with respect to soliciting votes of holders of claims based on publicly traded securities, in particular, the Class 3 Senior Notes Claims; and (b) as the subscription agent for the Rights Offering. Holders of Class 5 Other General Unsecured Claims will receive the Solicitation Package excluding the Subscription Documents. Holders of claims in Classes 1, 2, 4, 6, and 7 will receive notices of their non-voting status and the Solicitation Package excluding the Ballots and Master Ballots, Subscription Documents, and Letters. Holders of Class 8 Equity Interests will receive the appropriate Notice of Non-Voting Status and the Confirmation Hearing Notice. Holders of DIP Claims, Administrative Claims, Priority Tax Claims, and Other Priority Claims will receive the appropriate Notice of Non-Voting Status and the Solicitation Package excluding the Ballots and Master Ballots, Subscription Documents, and Letters. Voting Record Date Bankruptcy Rule 3017(d) provides that, for the purposes of soliciting votes in connection with the confirmation of a plan of reorganization, "creditors and equity security holders shall include holders of stocks, bonds, debentures, notes and other securities of record on the date the order approving the disclosure statement is entered or another date fixed by the court, for cause, after notice and a hearing." Bankruptcy Rule 30l8(a) contains a similar provision regarding determination of the record date for voting purposes. In accordance with Bankruptcy Rules 3018(a) and 3017(d), the Debtors ask the Court to establish the date on which the hearing to consider approval of the Disclosure Statement commences as the record date for purposes of determining: (1) the creditors and interest holders that are entitled to receive the Solicitation Package pursuant to the Solicitation Procedures; (2) the creditors and interest holders entitled to vote to accept or reject the Plan; and (3) whether claims or interests have been properly transferred to an assignee pursuant to Bankruptcy Rule 3001(e) so that those assignee can vote as the holder of the appropriate claims or equity interests. The Disclosure Statement Hearing is currently set for September 26, 2007, Mr. Madron notes. Temporary Claim Allowance Procedures The Debtors also ask the Court to approve certain procedures regarding the temporary allowance of claims for voting purposes only. Specifically, if an objection to a claim is pending on the Voting Record Date, the claim holder will receive a copy of the Confirmation Hearing Notice and a notice informing the holder that it may not vote on the Plan unless one or more of these events occur prior to the deadline to cast votes: * The Court temporarily allows the disputed claim for voting purposes pursuant to Bankruptcy Rule 30l8(a); * The Debtors and the claim holder enter into a stipulation or agreement resolving the claim objection and permitting the claim holder to vote its claim in an agreed upon amount; * The Debtors voluntarily withdraw the pending claim objection; or * The Court overrules the claim objection. Voting Deadline In addition, the Debtors ask the Court to establish 5:00 p.m., prevailing Pacific time, on the date that is 10 days before the Plan Confirmation Hearing, as the deadline to cast votes in favor of or against the Plan, as well as the deadline by which a Rights Offering Participant must affirmatively elect to participate in the Rights Offering. The Debtors also seek the Court's authority to extend the Voting Deadline for all voting creditors, if necessary, without further Court order, to date no later than five business days before the Confirmation Hearing. Plan Confirmation Hearing Moreover, the Debtors ask the Court to convene the Plan Confirmation Hearing approximately 47 days after the Solicitation Package is distributed to voting creditors, which date may be continued from time to time by the Court or the Debtors without further notice other than adjournments announced in open Court. The proposed timing for the Confirmation Hearing will enable the Debtors to pursue confirmation of the Plan in a timely manner, Mr. Madron avers. The Confirmation Hearing Notice to be sent to parties-in- interest contains, among other things, the: (a) deadline to object to the Plan; (b) Confirmation Hearing date and time; (c) Voting Deadline; (d) Voting Record Date; and (e) Temporary Claim Allowance Procedures. According to Mr. Madron, the Confirmation Hearing Notice will inform parties-in-interest that the Plan, the Disclosure Statement, the Disclosure Statement Order, and all other Solicitation Package materials except Ballots, Master Ballots and Subscription Documents can be obtained by: * accessing the Debtors' Web site at: http://dura.kccllc.net/dura * writing to: Dura Automotive Systems, Inc. c/o Kurtzman Carson Consultants LLC 2335 Alaska Avenue, EI Segundo, CA 90245 * sending an email to durainfo@kccllc.com; or * calling (800) 820-0985. The Debtors propose that objections to confirmation of the Plan or proposed modifications to the Plan, if any, must: -- be in writing; -- state the name and address of the objecting party; -- state the amount and nature of the claim or interest of the objecting party; -- state with particularity the basis and nature of the Plan Objection and, if practicable, proposed modifications to the Plan that will resolve the Objection; and -- be filed, together with proof of service, with the Court and served so as to be received by these Notice Parties no later than 4:00 p.m., prevailing Eastern Time, on the date that is 21 days prior to the date of the Confirmation Hearing: * the Debtors, * Kirkland & Ellis LLP and Richards Layton & Finger, P.A., counsel to the Debtors, * the U.S. Trustee; * Young Conaway Stargatt & Taylor, LLP, and Kramer Levin Naftalis & Frankel LLP, counsel to the Official Committee of Unsecured Creditors, * Willkie Farr & Gallagher LLP, counsel to the Bank of New York Trust Company, N.A., as Indenture Trustee for the Senior Notes, * Weil, Gotshal & Manges LLP and Winston & Strawn, counsel to the DIP Lenders; * Kurtzman Carsou Consultants LLC, the Debtors' claims and solicitation agent, * Potter Anderson & Corroon LLP and Bracewell & Giuliani, counsel to the Second Lien Group, * Morgan, Lewis & Bockius LLP, counsel to the Administrative Agent to the 2nd Lien Lenders, and * Latham & Watkins LLP, counsel to backstop party, Pacificor LLC. The proposed timing for filing and service of objections and proposed modifications, if any, will afford the Court, the Debtors, and other parties-in-interest sufficient time to consider the objections and proposed modifications prior to the Confirmation Hearing, Mr. Madron relates. The Debtors seek the Court's permission to file their reply to any Plan Objections by 12:00 p.m., prevailing Eastern Time, two business days before the Confirmation Hearing. About DURA Automotive Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. The Debtors' exclusive plan-filing period expires on Sept. 30, 2007. (Dura Automotive Bankruptcy News, Issue No. 28 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). EMI GROUP: Redeems Outstanding GBP325 Million Bonds --------------------------------------------------- EMI Group Plc redeemed all of the outstanding GBP250 million 8.25% bonds due 2008 and GBP75 million 8.25% bonds due 2008 on Sept. 11, 2007. The bonds were redeemed at the price set out in the company announcement on Sept. 7, 2007. The bonds, which are listed in the London Stock Exchange, will be canceled and there are no further bonds outstanding. About EMI Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group has operations in Brazil, China, and Hungary. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. The company issued two profit warnings since January 2007. * * * As reported in the TCR-Europe on Aug. 6, 2007, Moody's Investors Service downgraded EMI Group plc's corporate family and senior debt ratings to B1 (from Ba3). All ratings remain under review for downgrade. Ratings downgraded to B1 (under review for further downgrade) are: EMI Group plc -- CFR and the ratings of the 8.25% GBP bonds due 2008 and the 8.625% Euro notes due 2013 Capitol Records Inc. (gtd. by EMI Group plc) -- the rating of the 8.375% guaranteed notes due 2009. All ratings remain under review for possible downgrade. Maltby has not yet signaled whether any of the rated instruments are expected to form part of EMI's capital structure to the extent they remain outstanding under their terms. Moody's ongoing review will now be focused on : (i) the new entity's capital structure and financial policies (ii) the relative position of the rated instruments within the new capital structure and their relative ranking amongst each other and relative to other classes of debt (to the extent they remain outstanding) and (iii) the outlook for the global music markets and the company's operational plans. In February 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit and senior unsecured debt ratings on U.K.-based music group EMI Group PLC to 'BB-' from 'BB'. The 'B' short-term rating was affirmed. At the same time, the long-term corporate credit rating and debt ratings were put on CreditWatch with negative implications. EUROTECHNIX LTD: Creditors' Meeting Slated for Sept. 25 ------------------------------------------------------- Creditors of Eurotechnix Ltd. (Company Number 02885522) will meet at 11:00 a.m. on Sept. 25 at: Vantis 81 Station Road Marlow Buckinghamshire SL7 1NS England Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Sept. 22 at: Frank Wessely Joint Administrator Vantis 81 Station Road Marlow Buckinghamshire SL7 1NS England Headquartered in United Kingdom, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. FORD MOTOR: Health Fund Remains Main Sticking Point in Talks ------------------------------------------------------------ Detroit's “big three” automakers and the United Auto Workers are continuing to hammer out vital points concerning the biggest issue in its contract negotiations –- the creation of a multibillion-dollar, union-controlled health care trust fund, Jeffrey Mccracken writes for the Wall Street Journal, citing people familiar with the matter. According to the report, sources close to the matter claim that the parties involved have largely come to agreement on issues such as health care inflation and actuarial figures about the 721,000 active workers, retirees and spouses covered by the auto makers. The trust fund is expected to cut about US$95 billion from the carmakers' retiree costs. The three automakers are believed to be pushing to finance the health care fund at no more than 70 cents on the dollar, which would create a trust fund in excess of US$60 billion, making it one of the largest investment funds in the country, WSJ states. However, a huge gap remains between funding proposed by the auto makers and the level discussed by the UAW, described as "still well into the several-billion-dollars range" by a person familiar with the talks, although the two have narrowed the gap over the past week, WSJ relates. The UAW is amenable to creating a trust fund for retiree health-care benefits as long as all of the parties involved can reach an agreement on funding terms. While the contract negotiations continue, the UAW has helped GM, Ford and Chrysler in their respective turnaround efforts by reducing the number of workers eligible for "jobs bank" programs through buyout programs that have cut over 55,000 factory jobs, Reuters reports, quoting UAW president Ron Gettelfinger. Under the jobs bank provision, workers get paid nearly their full salaries if they are laid off. As part of the jobs bank, workers can do volunteer community work or go to school or just report to the plant, Jui Chakravorty writes for Reuters. Mr. Gettelfinger had earlier said that the jobs bank was "not an issue" but after the UAW gave up union jobs, he would not go into these talks "in a concessionary mode." The jobs bank benefit is part of the concerns to be discussed in the ongoing talks, Reuters says. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the Company maintains a presence in Sweden, and the United Kingdom. The Company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the TCR-Europe on July 31, 2007, Moody's Investors Service said that the performance of Ford Motor Company's global automotive operations for the second quarter of 2007 was significantly stronger than the previous year and better than street expectations. However, Moody's explained that the company continues to face significant competitive and financial challenges, and the rating agency expects that Ford's credit metrics and rate of cash consumption will likely remain consistent with no higher than a B3 corporate family rating level into 2008. According to the rating agency, Ford's corporate family rating is currently a B3 with a negative outlook. The rating is pressured by the shift in consumer preference from high margin trucks and SUVs, and by the need for a new 2007 UAW contract that provides meaningful relief from high health care costs and burdensome work rules, Moody's relates. GENERAL MOTORS: Health Fund Remains Main Sticking Point in Talks ---------------------------------------------------------------- Detroit's “big three” automakers and the United Auto Workers are continuing to hammer out vital points concerning the biggest issue in its contract negotiations –- the creation of a multibillion-dollar, union-controlled health care trust fund, Jeffrey Mccracken writes for the Wall Street Journal, citing people familiar with the matter. According to the report, sources close to the matter claim that the parties involved have largely come to agreement on issues such as health care inflation and actuarial figures about the 721,000 active workers, retirees and spouses covered by the auto makers. The trust fund is expected to cut about US$95 billion from the carmakers' retiree costs. The three automakers are believed to be pushing to finance the health care fund at no more than 70 cents on the dollar, which would create a trust fund in excess of US$60 billion, making it one of the largest investment funds in the country, WSJ states. However, a huge gap remains between funding proposed by the auto makers and the level discussed by the UAW, described as "still well into the several-billion-dollars range" by a person familiar with the talks, although the two have narrowed the gap over the past week, WSJ relates. The UAW is amenable to creating a trust fund for retiree health-care benefits as long as all of the parties involved can reach an agreement on funding terms. While the contract negotiations continue, the UAW has helped GM, Ford and Chrysler in their respective turnaround efforts by reducing the number of workers eligible for "jobs bank" programs through buyout programs that have cut over 55,000 factory jobs, Reuters reports, quoting UAW president Ron Gettelfinger. Under the jobs bank provision, workers get paid nearly their full salaries if they are laid off. As part of the jobs bank, workers can do volunteer community work or go to school or just report to the plant, Jui Chakravorty writes for Reuters. Mr. Gettelfinger had earlier said that the jobs bank was "not an issue" but after the UAW gave up union jobs, he would not go into these talks "in a concessionary mode." The jobs bank benefit is part of the concerns to be discussed in the ongoing talks, Reuters says. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on May 28, 2007, Standard & Poor's Ratings Services placed General Motors Corp.'s corporate credit rating at B/Negative/B-3. At the same time, Moody's Investors Service affirmed GM's B3 Corporate Family Rating and B3 Probability of Default Rating, and maintained its SGL-3 Speculative Grade Liquidity Rating. The rating outlook remains negative, according to Moody's. HERMES XIV: Fitch Rate's EUR18 Million Class E Notes at BB ---------------------------------------------------------- Fitch Ratings has assigned expected ratings to Holland Mortgage Backed Series (Hermes) XIV's EUR2 billion floating-rate notes, due November 2039: -- EUR500 million senior Class A1 mortgage-backed notes: 'AAA' -- EUR1.398 billion senior Class A2 mortgage-backed notes: 'AAA' -- EUR16 million mezzanine Class B mortgage-backed notes: 'AA+' -- EUR54 million mezzanine Class C mortgage-backed notes: 'A' -- EUR14 million junior Class D mortgage-backed notes: 'BBB+' -- EUR18 million subordinated Class E floating-rate notes: 'BB' Each rated class of notes in this transaction is expected to have a Stable Outlook. The final ratings are contingent upon the receipt of final documents conforming to information already received. Hermes XIV is a securitization of Dutch residential mortgages originated by SNS Bank N.V. (rated 'A+'/'F1'/Outlook Stable) and its wholly-owned subsidiary BLG Hypotheekbank N.V. The portfolio consists of first-ranking fixed- and floating-rate mortgages secured over residential properties located in the Netherlands. The expected ratings are based on the quality of the collateral, available credit enhancement and excess spread, a sound legal structure, the underwriting and servicing of SNS, the liquidity facility, the guaranteed investment contract in place and the interest rate swap provided and guaranteed by SNS. At closing, credit enhancement provided by subordination will be 5.1% for the Class A notes, 4.3% for the Class B notes, 1.6% for the Class C notes and 0.9% for the Class D notes. Like Hermes XIII, the transaction does not benefit from a reserve fund; the credit enhancement for each class of notes is provided by subordination, as well as the 35bps excess spread paid under the swap. INTERNATIONAL RECTIFIER: Accounting Errors Cue 10-K Filing Delay ---------------------------------------------------------------- International Rectifier Corporation disclosed in a regulatory filing with the U.S. Securities and Exchange Commission that it will be unable to timely file its Annual Report on Form 10-K for the fiscal year ended June 30, 2007. The company previously disclosed on April 9, 2007, that the Audit Committee of the Board of Directors determined that the company's financial statements for the preceding six quarters and the fiscal year ended June 30, 2006, should no longer be relied upon. Additionally, on May 11, 2007, the Audit Committee has also determined that the company's financial statements for the quarters ended March 31, 2005 and June 30, 2005, and for the fiscal year ended June 30, 2005 should no longer be relied upon. These determinations were based on accounting irregularities discovered at the company's Japan subsidiary by independent investigators hired by outside legal counsel conducting an investigation at the Audit Committee's request. In addition to accounting irregularities discovered in connection with the company's ongoing investigation, the company has also identified issues associated with its transfer pricing methodology and other tax issues for its fiscal years 2002 through 2007. Review of potential tax liabilities, credits and related matters is currently under way. The company has not yet completed its determination of the amount of additional tax liability, but believes the amount of any potential tax liability is material to income in fiscal years 2004 through 2007. Accordingly, at a meeting on Aug. 29, 2007, the Audit Committee concluded that, in addition to the periods specified in the company's April 9, 2007 Current Report on Form 8-K and May 11, 2007 Current Report on Form 8-K/A, the Company's financial statements for: (i) the fiscal quarters ended Sept. 30, 2003, Dec. 31, 2003, March 31, 2004 and June 30, 2004; (ii) the 2004 fiscal year ended June 30, 2004; and (iii) the fiscal quarters ended September 30, 2004 and Dec. 31, 2004, should not be relied upon. The Audit Committee has discussed the matters disclosed in this filing with the company's independent registered public accounting firm. International Rectifier Corporation -- http://www.irf.com/-- (NYSE:IRF) is a world leader in power management technology. IR's analog, digital, and mixed signal ICs, and other advanced power management products, enable high performance computing and save energy in a wide variety of business and consumer applications. Leading manufacturers of computers, energy efficient appliances, lighting, automobiles, satellites, aircraft, and defense systems rely on IR's power management solutions to power their next generation products. The company has manufacturing facilities in the U.S., Mexico, United Kingdom, Germany and Italy; and has subsidiaries in Japan and Singapore. INTERNATIONAL RECTIFIER: S&P Retains Negative Watch on BB Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services said that its 'BB' corporate credit rating on International Rectifier Corp. remains on CreditWatch with negative implications. International Rectifier has stated that it cannot timely file its form 10-K for the June 30, 2007 fiscal year, because of an ongoing investigation, led by IR's audit committee, into the company's financial reporting at a foreign subsidiary and related material weaknesses in internal controls. As a result of the investigation, as well as accounting issues related to restructuring costs and tax matters, IR will need to restate prior years' financial statements. "The ratings originally were placed on CreditWatch on April 9, 2007, when the matter was first disclosed; subsequently, the company extended the period of time during which its financial results were not to be relied upon, extending back to fiscal 2002," said Standard & Poor's credit analyst Bruce Hyman. Additionally, the company's chief financial officer and certain sales executives have left the company, and the CEO has been placed on leave. The company has further found that cash tax liabilities may exceed US$75 million, while its cash outlays related to the investigation have been substantial. While the quality of both accounting and corporate governance remain analytical concerns, IR is believed to have sufficient operating liquidity (net cash was over US$500 million at Dec. 31, 2006, the last-filed financial statement date) and has no debt, which should cushion the downside risk to the corporate credit rating. S&P will continue to monitor events to assess the effect on its ratings on International Rectifier. International Rectifier Corporation -- http://www.irf.com/-- (NYSE:IRF) is a world leader in power management technology. IR's analog, digital, and mixed signal ICs, and other advanced power management products, enable high performance computing and save energy in a wide variety of business and consumer applications. Leading manufacturers of computers, energy efficient appliances, lighting, automobiles, satellites, aircraft, and defense systems rely on IR's power management solutions to power their next generation products. The company has manufacturing facilities in the U.S., Mexico, United Kingdom, Germany and Italy; and has subsidiaries in Japan and Singapore. LCS COMBINED: Appoints Liquidators from BDO Stoy Hayward -------------------------------------------------------- David Swaden and Matthew Dunham of BDO Stoy Hayward LLP were appointed joint liquidators of LCS Combined Services Ltd. (formerly Liverpool Cleaning Service Ltd.) on Sept. 5 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: BDO Stoy Hayward LLP Commercial Buildings 11-15 Cross Street Manchester M2 1BD England METRONET GROUP: London Underground Eyes Contract Restructuring -------------------------------------------------------------- London Underground is looking at restructuring Metronet Rail Group's GBP30 billion public private partnership contracts once it takes control of the insolvent maintenance company, Marcus Leroux and Ben Webster write for The Times. "If we got hold of it, we'd get these contracts restructured and that would be saleable. We could break it up and put the station upgrades out to somebody and the track upgrades out to somebody else," Tim O'Toole, the managing director of LU, was quoted by the Times as saying. LU, which earlier expressed its interest in the contracts, is expected to submit a formal offer before the end of this month, although Metronet administrator Ernst & Young indicated it might still seek for other bidders following the valuation of the company, the Times relates. However, according to Bloomberg News, LU expects no other bidders would emerge as Metronet has already proved its contract "doesn't have any value." Metronet's Debt Metronet owes GBP1.6 billion in secured debt, the London Assembly says. At London's Assembly Transport Committee meeting on Sept. 11, 2007, key players in Metronet's PPP Administration said LU's owner Transport for London has underwritten 95% of this amount and is ultimately liable for the debt. In addition to the secured debt, the administrator of Metronet has up to an GBP897 million loan facility with Transport for London, which may be used to cover the company's estimated GBP19 million weekly operating deficit. Under questioning from the Committee, Mr. O'Toole, said he was in discussion with the Department for Transport about covering the costs of Metronet's failure, but that he does not know if or when any money would be paid back to TfL. Committee Members also expressed concern at confirmation that the station refurbishment program has been suspended as a result of Metronet going into Administration. "I am pleased that Londoners are now clearer on exactly how much money Metronet – or 'Metro-debt' as they could now be called - owes. However, we are still not clear as to how the situation will be resolved. Whatever happens, it needs to happen quickly, as vital station refurbishment work is not being done," Roger Evans AM, chair of the Assembly's Transport Committee, said. Impact on 2012 Olympic Games Meanwhile, a spokesman for TfL dismissed The Rail, Martime and Transport Union's claims that Metronet's troubles might affect the preparations for the 2012 Olympic Games, BBC News reports. According to the union's leader Bob Crow, Metronet's collapse is costing around GBP250,000 a day. "It is an expensive charade. The Government should end the uncertainty and allow London's Mayor to bring Metronet contracts back into the public sector," Mr. Crow said. RMT carried out a 72-hour strike last week over job cuts and pensions, BBC News relates. About Metronet The Metronet Rail Group -- http://www.metronetrail.com/-- is responsible for upgrading, replacing and maintaining two-thirds of London Underground's infrastructure -- its trains, stations, signaling, track, tunnels and bridges -- under a 30-year Public Private Partnership (PPP) contract which came into operation in April 2003. The Metronet Rail Group owns and operates Metronet Rail BCV Ltd. and Metronet Rail SSL Lte. -- which maintain the Bakerloo, Central, Victoria, and Waterloo & City lines (BCV) and Circle, District, Metropolitan, Hammersmith & City and East London lines (SSL). On July 18, 2007, Metronet Rail BCV Ltd. and Metronet Rail SSL Ltd., entered Administration; Alan Bloom, Maggie Mills, Roy Bailey and Stephen Harris, partners and directors of Ernst & Young LLP, were appointed PPP Administrators. * * * As reported in the TCR-Europe on July 20, 2007, Moody's Investors Service downgraded to B1 from Ba2 the senior secured unguaranteed debt ratings of both Metronet Rail BCV Finance plc and of Metronet Rail SSL Finance Plc. NORTHERN ROCK: Seeks Outside Help to Avert Liquidity Crisis ----------------------------------------------------------- In light of the continuing extreme conditions in global liquidity, Northern Rock plc has released an update on its trading performance and outlook to the market. It has now become clear that the global credit and liquidity markets have not recovered in the early part of September, and that there continues to be a severe liquidity squeeze. In the UK, this is demonstrated by three-month Sterling Libor currently running at over 1% higher than Bank Base Rate. In these circumstances, Northern Rock has taken action to preserve liquidity and to maintain margins on its current loan book, while modifying its lending approach to avoid writing new business that is unprofitable in current conditions. Although Northern Rock expects its new lending volumes to increase once the wholesale funding markets return to more normal volumes and prices, it must now plan on the basis that the wholesale funding markets will not return to historic levels in the short to medium term. In addition, the previously announced decision to dispose of more capital inefficient assets has been suspended but will be resumed once the pricing environment for such assets improves. On the assumption that the current conditions remain until the end of 2007, there will clearly be an impact on Northern Rock’s 2007 asset growth and, therefore, on profits. There will also be a consequential impact on its 2008 profits, which will be driven by developments in global liquidity conditions and the interest rate and credit risk environment, as well as the prospects for the UK mortgage market. Funding Update Global investor appetite in the medium and long term markets, for either senior unsecured or asset backed securities, is currently greatly reduced. While Northern Rock expects conditions will improve over the medium term, potential volumes and pricing levels for the remainder of 2007 are likely to remain less favorable than those which have been achieved during the last two years. While Northern Rock has continued to raise new funds, these have been mainly in the short term wholesale debt markets and the amounts raised have not allowed Northern Rock to refinance maturing liabilities as well as to write new business at previous levels. In view of the difficulties Northern Rock has had in accessing longer term funding and the mortgage securitization markets, the Company has been using its cash and other liquid reserves to support the funding of its business. Northern Rock expects current market conditions to continue for some time. In light of the above, Northern Rock has concluded that it is important to ensure that additional standby liquidity arrangements are available. Accordingly, Northern Rock has agreed with the Bank of England that it can raise such amounts of liquidity as may be necessary by either borrowing on a secured basis from the Bank of England or entering into repurchase facilities with the Bank of England. Such repurchase facilities would include securities that have prime residential mortgage assets as underlying collateral. The collateral that can be used under this "Repo" facility is similar in nature to the collateral currently utilized by many Eurozone banks with the ECB. This additional source of funding will enable Northern Rock to adapt its business model in line with the developing market conditions. Lending Volumes Update In the first eight months of the year, Northern Rock’s total net lending was up 43% over the same period in 2006, with net residential lending up 55%. Given the current global liquidity squeeze, Northern Rock has slowed new lending volumes and believes the effects of slower lending will be reflected in fourth quarter figures. The company expects that total asset growth for 2007 will be around 9%. Asset Quality Northern Rock is a prime-only lender and credit quality on all its loan books remains strong. Three months plus arrears in the residential book were 0.47% at the end of August (0.47% in June), still under half the industry average, and 1.21% (1.11% in June) on the standalone unsecured book. Three months plus arrears on the Together secured book were 0.86% at the end of August (0.90% in June). Costs Update Costs at Northern Rock continue to be tightly controlled, with cost growth expected at around 3% in 2007, which is lower than previously guided reflecting reduced business activity. Restated Profit & Outlook Given the slowing of asset growth resulting from the credit and liquidity turmoil, Northern Rock now expects underlying profit before tax for 2007 will be around GBP500 million – GBP540 million, compared to GBP588 million in 2006. Current consensus forecast for 2007 underlying profit before tax is GBP647 million, which includes around GBP37 million from further asset sales and swap gains beyond those already realized. The company's expectation for 2007 assumes no further programmed asset disposals in 2007 and no further AFS gains or interest rate swap gains, other than those already announced and booked at the time of the first half results. Northern Rock will continue its strategy of providing prime-only UK residential mortgages through its efficient and service driven business platform. The business model will, however, evolve in line with the developing market conditions. The outlook for 2008 will depend on the speed of the recovery in global wholesale funding markets and where interest rate spreads stabilize in the global wholesale funding markets, as well as the evolution of the company’s business model. Northern Rock remains well capitalized as indicated in its interim results to June 30, 2007 and the company expects its capital position to be strengthened further with slower asset growth. The interim dividend will be paid as planned on Oct. 26, 2007. Further information on Northern Rock’s 2007 trading performance will be provided in a Preclose Trading Statement in early December 2007. Northern Rock CEO Adam J. Applegarth commented: “We are seeing extreme conditions in global liquidity, which have impacted on world markets. As a result, we have taken prudent action to rein back our lending until markets normalize. Against that background it is inevitable, albeit disappointing, that our profits will be affected.” “We remain focused on prime lending in the UK mortgage market and our credit quality remains robust. The support of the Bank of England through this facility reflects a recognition that Northern Rock is solvent, exceeds its regulatory capital requirement and has a good quality loan book. In these extreme times we are pleased to have a high quality asset base and remain confident in the excellence of our strong customer franchise, our efficient business platform and our well-known brand." About Northern Rock plc Headquartered in Newcastle upon Tyne, England, Northern Rock plc -- http://www.northernrock.co.uk/mortgages/-- is currently the 5th largest UK mortgage lender, the largest financial institution based in the North East of England and one of the most cost efficient UK mortgage lenders based on key performance ratios. The company had more than US$200 billion in assets at the end of June 2007. PROTON HOLDINGS: Abdullah Denies VW Reports Asking for 20% Stake ---------------------------------------------------------------- German carmaker Volkswagen AG has not yet made any formal proposal regarding its interest in taking a stake in Malaysia's state-controlled carmaker Proton Holdings, Malaysian Prime Minister Abdullah Ahmad Badawi told Reuters. In an earlier report, Reuters, citing a person familiar with the situation in Frankfurt, noted that VW wants to take a 20% stake in Proton and could increase its interest to 50% within five years. There's no formal request and there's no formal proposal," Mr. Abdullah told reporters. VW's chief executive, Martin Winterkorn, also denied the agreement report in an interview with the Frankfurter Allgemeine Zeitung newspaper by saying: "This has not yet been agreed, but it could go in that direction." According to Reuters, the idea of the planned stake purchase is for the Malaysian Government to gradually pull out while taking on any losses during the starting phase. The German carmaker has long been interested in strengthening its position in Southeast Asia, the report relates. About Proton Holdings Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan Otomobil Nasional Berhad or Proton Holdings Berhad -- http://www.protonedar.com.my/-- is engaged in manufacturing, assembling, trading and provision of engineering and other services in respect of motor vehicles and related products. Its other activities include property development, trading of steel and related products, engine and technologies research, development of automotive related technologies, investment holding, importation and distribution of motor vehicles, related spare parts and accessories, holds intellectual property, provides engineering consultancy, operates single make race series and carries out specific engineering contracts. The Group's operations are carried out in Malaysia, England, Australia, Socialist Republic of Vietnam and the United States of America. Proton was reported as among Malaysia's worst performing companies in 2005, after competition from foreign carmakers and a lack of new models lost the firm local market share and subsequently led it into a loss. It has since brought in a new chief, sold its loss-making MV Agusta motorbike firm and pledged to find a new technology partner. The Company has been under increasing pressure, with its share of domestic sales falling to 44% from 75% over the past decade. The Troubled Company Reporter-Asia Pacific reported on May 4, 2006, that Proton was expected to finalize a recovery plan and seal an alliance with a strategic partner, in order to boost sales and become more competitive. However, the carmaker until now has yet to name a strategic partner. On May 23, 2007, the TCR-AP reported that Proton Holdings may need a government bailout if talks to sell a stake to a foreign investor continue to falter. PROTON HOLDINGS: Unit Bags MYR4 Mil. Supply Deal with Toyota ------------------------------------------------------------ Miyazu (Malaysia) Sdn Bhd, a unit of Proton Holdings Bhd, has secured a MYR4-million contract from Toyota Auto Body Malaysia to supply car chassis for the next three years, The Edge Daily reports. The contract is expected to account for 80% of the unit's production capacity, the report adds. At the handing over of the first blanking sheet to TABM, Proton's manufacturing director Datuk Kamarulzaman Darus said the contract would see the company supplying 29 auto parts to TABM, which would be delivered four times daily on the basis of pull system in compliance with TABM's production cycle. The system is expected to increase Miyazu's overall equipment effectiveness by 15%, the news agency relates. Mr. Kamarulzaman added that the cooperation with TABM would benefit Proton, as it would contribute towards the group's overall revenue as well as providing Proton and Miyazu's employees an opportunity to enhance and upgrade their capabilities. In addition, Proton also aims to be a key stamping dies and parts supplier for TABM and Toyota Group globally from its newly-set up plant in Shah Alam, Selangor. Miyazu Chief Operating Officer Amrizal Abdul Majid said the company planned to implement the stamping production line in its Tanjung Malim plant in the next fiscal year after monitoring the performance of its Shah Alam facility. About Proton Holdings Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan Otomobil Nasional Berhad or Proton Holdings Berhad -- http://www.protonedar.com.my/-- is engaged in manufacturing, assembling, trading and provision of engineering and other services in respect of motor vehicles and related products. Its other activities include property development, trading of steel and related products, engine and technologies research, development of automotive related technologies, investment holding, importation and distribution of motor vehicles, related spare parts and accessories, holds intellectual property, provides engineering consultancy, operates single make race series and carries out specific engineering contracts. The Group's operations are carried out in Malaysia, England, Australia, Socialist Republic of Vietnam and the United States of America. Proton was reported as among Malaysia's worst performing companies in 2005, after competition from foreign carmakers and a lack of new models lost the firm local market share and subsequently led it into a loss. It has since brought in a new chief, sold its loss-making MV Agusta motorbike firm and pledged to find a new technology partner. The Company has been under increasing pressure, with its share of domestic sales falling to 44% from 75% over the past decade. The Troubled Company Reporter-Asia Pacific reported on May 4, 2006, that Proton was expected to finalize a recovery plan and seal an alliance with a strategic partner, in order to boost sales and become more competitive. However, the carmaker until now has yet to name a strategic partner. On May 23, 2007, the TCR-AP reported that Proton Holdings may need a government bailout if talks to sell a stake to a foreign investor continue to falter. R.A. GANDER: Joint Liquidators Take Over Operations --------------------------------------------------- Anthony Murphy and Robert Horton and Roger Tulloch of Smith & Williamson Ltd. were appointed joint liquidators of R.A. Gander (Haulage) Ltd. on for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Smith & Williamson Ltd. No. 1 Bishops Wharf Walnut Tree Close Guildford Surrey GU1 4RA England SPRAY PROCESSES: Brings In Liquidators from BDO Stoy Hayward ------------------------------------------------------------ Geoffrey Stuart Kinlan and Antony David Nygate of BDO Stoy Hayward LLP were appointed joint liquidators of Spray Processes Ltd. on Aug. 28 for the creditors' voluntary winding-up procedure. Mr. Kinlan can be reached at: BDO Stoy Hayward LLP Prospect Place 85 Great North Road Hatfield Hertfordshire AL9 5BS England Mr. Nygate can be reached at: BDO Stoy Hayward 8 Baker Street London W1U 3LL England The company can be reached at: Spray Processes Ltd. 49A Bromham Road Bedford Bedfordshire MK40 2AA England SUNDANCE SPAS: Claims Filing Period Ends October 16 --------------------------------------------------- Creditors of Sundance Spas NW Ltd. have until Oct. 16 to send in their full names, their addresses and descriptions, full particulars of their debts or claims and the names and addresses of their solicitors (if any) to: Steven Draine Joint Liquidator Moore Stephens LLP 3/5 Rickmansworth Road Watford Herts WD18 0GX England Steven Draine and David Rolph of Moore Stephens LLP were appointed joint liquidators of the company on Sept. 7 for the creditors' voluntary winding-up proceeding. THERMOMAX LTD: Creditors' Meeting Slated for Sept. 26 ----------------------------------------------------- Creditors of Thermomax (Great Britain) Ltd. (Company Number 02664234) will meet at 11:00 a.m. on Sept. 26 at: PricewaterhouseCoopers LLP Waterfront Plaza 8 Laganbank Road Belfast BT1 3LR Northern Ireland Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Sept. 25 at: G.A. Calow and R.N. Lewis Joint Administrators PricewaterhouseCoopers LLP Waterfront Plaza 8 Laganbank Road Belfast BT1 3LR Northern Ireland PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. TRIMFOAM UK: Hires Liquidators from DTE Leonard Curtis ------------------------------------------------------ J. M. Titley and P. Reeves of DTE Leonard Curtis were appointed joint liquidators of Trimfoam (U.K.) Ltd. on for the creditors' voluntary winding-up procedure. The joint liquidators can be reached at: DTE Leonard Curtis DTE House Hollins Mount Hollins Lane Bury Lancs BL9 8AT England VETERINARY PRACTICE: Calls In Liquidators from PwC -------------------------------------------------- Robert William Birchall and Stephen Mark Oldfield of PricewaterhouseCoopers LLP were appointed joint liquidators of Veterinary Practice Initiatives Ltd. (formerly Veterinary Business Consulting Ltd.) (t/a VPI) on Aug. 23 for the creditors' voluntary winding-up procedure. Mr. Birchall can be reached at: PricewaterhouseCoopers LLP 12 Plumtree Court London EC4A 4HT England Mr. Oldfield can be reached at: PricewaterhouseCoopers LLP Abacus House Castle Park Gloucester Street Cambridge CB3 0AN England VICTORIA MORTGAGE: Names Joint Administrators from KPMG ------------------------------------------------------- Chris Laverty and Mick McLoughlin of KPMG LLP were appointed joint administrators of Victoria Mortgage Funding Ltd. on Sept. 10, 2007. The administrators are currently reviewing the financial position of the company and are actively seeking a buyer for its current portfolio. According to the administrators, anyone with a mortgage offer received after June 10, 2007, but where a property has not been purchased should contact their mortgage broker as soon as possible. As reported in the TCR-Europe on Sept. 12, 2007, the British subprime specialist has stopped funding new loans after its financial backers withheld funds due to escalating costs. KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax-related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. About Victoria Mortgages Funding Limited London-based Victoria Mortgages Funding Limited -- http://www.vmf-uk.com/-- specializes in the non-conforming mortgage market. U.S. venture capital group Venturion Capital owns majority of Victoria Mortgages, which was launched in May 2005. The firm's business represents about 0.064 per cent of the UK mortgage market. Victoria Mortgages distributes entirely through packagers who bridge the gap between mortgage advisers and lenders. It offers a range of products from self-certified mortgages for prime borrowers to mortgages for borrowers with heavy adverse credit. The lender has 50 employees and 5,500 customers. It sold GBP500 million worth of mortgages in 2006, accounting for about 3% of the overall subprime market. VIRAGEN INC: Swedish Unit Files for Bankruptcy Protection --------------------------------------------------------- ViraNative AB, a wholly owned subsidiary of Viragen International, Inc., applied for bankruptcy proceedings in the District Court of Umea under the bankruptcy laws of Sweden. The company cited its inability to pay taxes and other debts. The bankruptcy court has appointed Anders Bergman of Ackordscentralen Norrland AB as bankruptcy administrator for ViraNative. Mr. Bergman will: -- inventory of the Debtor's assets; -- identify creditors and the amount of their claims; -- seek to identify purchasers for the Debtor's assets; and -- process their orderly liquidation and sale in accordance with Swedish laws. While Viragen, Inc. continues to seek new sources of working capital to fund its operations, and the operations of Viragen International, Inc., the Companies do not intend to fund further operations of ViraNative during the bankruptcy process. Therefore, ViraNative's operations may be disrupted or halted. Viragen, Inc. and Viragen International, Inc. are monitoring the bankruptcy proceedings but at this stage cannot predict what impact the proceedings may have on their respective operations. About ViraNative AB Headquartered in Umea, Sweden, ViraNative AB manufactures Multiferon(R), a multi-subtype, human alpha interferon. The company's bankruptcy proceeding is docketed under Case Number K1767-07. About Viragen Based in Plantation, Florida, Viragen Inc. (AMEX: VRA) (OTC BB: VGNI) -- http://www.viragen.com/-- is a bio-pharmaceutical company engaged in the research, development, manufacture and commercialization of products for the treatment of cancers and viral diseases. The company operates from three locations: Plantation, Florida, which contains the company's administrative offices and support; Viragen (Scotland) Ltd., located outside Edinburgh, Scotland, which conducts the company's research and development activities; and ViraNative, located in Umea, Sweden, which houses the company's human alpha interferon manufacturing facilities. As of June 30, 2006, the company owned approximately 81.2% of Viragen International, Inc. Subsequent to June 30, 2006, its ownership interest of Viragen International was reduced to approximately 77.0%. Viragen International owns 100% of ViraNative AB, its Swedish subsidiary, and 100% of Viragen (Scotland) Ltd., its Scottish research center. Going Concern Doubt Ernst & Young LLP, in Fort Lauderdale, Fla., raised substantial doubt about Viragen, Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended June 30, 2006, and 2005. The auditing firm pointed to the company's recurring operating losses, accumulated and stockholders' deficiencies, and dependence on its ability to raise adequate capital to fund necessary product commercialization and development activities. VISCOUNT TOWN: Taps Liquidators from UHY Hacker Young ----------------------------------------------------- Andrew Andronikou and Ladislav Hornan of UHY Hacker Young were appointed joint liquidators of Viscount Town and Country Homes Ltd. (formerly Timecase Builders Ltd.) on Aug. 30 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: UHY Hacker Young St. Alphage House 2 Fore Street London EC2Y 5DH England WINDMILL CLO I: S&P Rates EUR15 Million Class E Notes at BB- ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its preliminary credit ratings to the EUR548 million senior secured floating- rate notes to be issued by Windmill CLO I Ltd. In addition, Windmill CLO I will issue a class of unrated notes totaling EUR52 million. At closing, Windmill CLO I will issue the notes, the proceeds of which, after paying transaction fees and expenses, will be invested in a portfolio of predominately senior-secured leveraged loans, mezzanine obligations, second-lien loans, PIK only loans, and principal protected equity obligations. The transaction has a seven-year reinvestment period. The portfolio manager will be Mizuho Investment Management (U.K.) Ltd. The ratings reflect: -- The appropriate rating on the obligation assimilable du Tresor strips that will principal protect equity investments; -- Commensurate credit enhancement in the form of overcollateralization and subordination; -- A diversified collateral pool of loans; -- Currency risk protections; -- Strong collateral investment guidelines; -- The expected insolvency-remoteness of the issuer; and -- Various amortization triggers. Ratings List Windmill CLO I Ltd. EUR548 Million Floating-Rate Notes And EUR52 Million Subordinated Notes Prelim. Prelim. Amount Class Rating (Mln. EUR) ----- ------ -------- A-1R AAA 200 A-1T AAA 165 A-2 AAA 60 B AA 55 C A- 32 D NR 21 E BB- 15 Subordinated notes NR 52 NR -- Not rated. * Deloitte Appoints Two Members to its Executive Group ------------------------------------------------------ Deloitte & Touche LLP appointed to its executive group, Margaret Ewing, a Deloitte vice-chairman, and Graham Richardson, Deloitte's London office senior partner on Sept. 12. "Margaret and Graham have a wealth of experience and lead significant business areas within the firm. Their focus is on providing a range of financial, consulting and advisory services to our clients," John Connolly, Deloitte senior partner and chief executive commented. "I'm extremely pleased to be joining Deloitte's Executive. My priorities continue to be on the specific challenges and strategic opportunities faced by Finance Directors and how they can be converted into business advantage for our clients," Ms. Ewing disclosed. "The London market remains hugely significant to the firm, and with several thousand of our people based in the capital, is a dynamic part of our business. I look forward to working with my Executive Group colleagues," Mr. Richardson added. Ms. Ewing rejoined Deloitte in February 2007 from BAA where she was Chief Financial Officer until October 2006 and before that she was Group Finance Director at Trinity Mirror. Mr. Richardson has been a U.K. partner for 20 years and has held a number of senior roles in the firm. Deloitte & Touche LLP -- http://www.deloitte.com/-- provides audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. The group is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. * BOND PRICING: For the Week Sept. 10 to Sept. 14, 2007 ------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- Kommunal Kredit Austria AG 0.500 03/15/19 CDN 61.50 0.250 10/14/26 CDN 38.22 Republic of Austria 4.000 06/22/22 EUR 72.45 0.396 08/04/25 EUR 65.85 5.000 10/10/25 EUR 61.59 FINLAND ------- Muni Finance PLC 1.000 03/19/13 AUD 73.29 0.500 04/26/13 AUD 70.60 1.000 11/21/16 NZD 56.93 0.500 09/24/20 CDN 56.37 0.250 06/28/40 CDN 19.99 FRANCE ------ Accor S.A. 1.750 01/01/08 EUR 62.39 Alcatel S.A. 4.750 01/01/11 EUR 16.12 Altran Technologies S.A. 3.750 01/01/09 EUR 12.43 BNP Paribas 0.250 12/20/14 US$ 69.75 CAP Gemini S.A. 2.500 01/01/10 EUR 54.17 1.000 01/01/12 EUR 48.58 Club Mediterranee S.A. 3.000 11/01/08 EUR 66.82 4.375 11/01/10 EUR 54.72 FCC Rome Alliance Funding 2.256 01/08/21 EUR 74.26 Havas S.A. 4.000 01/01/09 EUR 10.78 Infogrames Entertainment S.A. 1.500 04/01/09 EUR 00.50 Ingenico 2.750 01/01/12 EUR 19.87 Maurel & Prom 3.500 01/01/10 EUR 21.77 Publicis Group 0.750 07/17/08 EUR 31.75 1.000 01/18/18 EUR 42.81 Rallye 3.750 01/01/08 EUR 51.04 Rhodia S.A. 0.500 01/01/14 EUR 43.94 Scor S.A. 4.125 01/01/10 EUR 2.24 Soc Air France 2.750 04/01/20 EUR 29.57 Soitec 4.625 12/20/09 EUR 11.90 Thomson (EX-TMM) 1.000 01/01/08 EUR 39.49 Valeo 2.375 01/01/11 EUR 48.31 Vivendi Universal S.A. 1.750 10/30/08 EUR 30.79 Wavecom S.A. 1.750 01/01/14 EUR 27.76 Wendel Invest S.A. 2.000 06/19/09 EUR 46.26 GERMANY ------- KfW Bankengruppe 0.500 10/30/13 AUD 68.06 0.500 12/19/17 EUR 67.08 5.000 05/23/20 EUR 74.75 1.250 07/07/20 EUR 72.85 1.250 07/29/20 EUR 73.49 6.000 07/21/25 EUR 68.76 5.000 09/01/25 EUR 71.06 8.000 08/10/30 EUR 65.23 Landeskreditbank Baden- Wuerttemberg Foerderbk 0.500 05/10/27 CDN 42.41 Landwirtschaftliche Rentenbank AG 1.000 03/29/17 NZD 56.08 GREECE ------ Hellenic Republic 0.628 07/13/20 EUR 66.82 Hellenic Republic 6.000 07/06/24 EUR 72.38 ICELAND ------- Kaupthing Bank 6.500 02/03/45 EUR 68.94 7.500 02/03/45 US$ 64.70 IRELAND ------- Depfa ACS Bank 0.500 03/03/25 CDN 46.11 0.250 07/08/33 CDN 27.21 Irish Perm Plc 6.125 02/15/35 EUR 65.87 Magnolia Finance IV Plc 1.050 12/20/45 US$ 27.69 ITALY ----- Dexia Crediop S.p.A. 0.000 03/15/16 EUR 72.17 LUXEMBOURG ---------- Teksid Aluminum S.A. 12.375 07/15/11 EUR 42.38 NETHERLANDS ----------- ABN AMRO Bank N.V. 5.000 10/19/17 EUR 66.46 6.250 06/29/35 EUR 69.50 BK Ned Gemeenten 0.500 06/27/18 CDN 62.69 0.500 02/24/25 CDN 46.16 EM.TV Finance B.V. 5.250 05/08/13 EUR 6.02 Energy Group O/S 7.425 10/15/17 US$ 35.00 Gerling Global 3.500 08/16/21 EUR 62.66 KBC Ifima B.V. 3.500 02/07/25 US$ 74.90 Lehman Bros TSY B.V. 2.000 02/16/15 EUR 80.96 1.000 06/06/17 EUR 73.22 2.892 06/13/17 EUR 81.03 6.000 02/15/35 EUR 69.08 8.250 03/16/35 EUR 60.88 7.000 05/17/35 EUR 63.17 7.250 10/05/35 EUR 59.04 6.000 11/02/35 EUR 62.45 Ned Waterschapbk 6.000 06/01/35 EUR 70.79 6.500 08/15/35 EUR 64.66 Rabobank Groep N.V. 6.000 04/08/20 EUR 72.08 6.000 02/22/35 EUR 70.22 2.000 02/23/35 EUR 62.93 7.000 02/28/35 EUR 69.78 7.000 03/23/35 EUR 65.29 6.000 05/09/35 EUR 72.93 NORWAY ------ Kommunalbanken A.S. 0.500 02/07/13 AUD 70.92 SWEDEN ------ AB Svensk Export 0.500 03/27/13 AUD 70.93 SWITZERLAND ----------- UBS AG 1.000 01/25/12 NZD 75.17 1.000 02/27/12 NZD 74.58 1.000 03/28/12 NZD 74.27 1.000 06/28/12 NZD 73.13 1.000 07/30/12 NZD 72.97 UNITED KINGDOM -------------- Anglian Water Finance Plc 2.400 04/20/35 GBP 53.90 HBOS Treasury Services Plc 6.000 02/07/35 EUR 69.79 National Grid Gas Plc 1.754 10/17/36 GBP 44.04 1.771 03/30/37 GBP 43.97 Royal BK Scotland Plc 0.250 03/27/14 US$ 73.13 9.500 04/04/25 US$ 72.09 7.000 06/09/25 EUR 64.21 7.000 06/29/30 EUR 57.86 7.000 02/15/45 US$ 64.73 6.500 02/23/45 EUR 62.33 Wessex Water Finance Plc 1.369 07/31/57 GBP 29.47 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jazel P. Laureno, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, Kristina A. Godinez, and Pius Xerxes Tovilla, Editors. Copyright 2007. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. 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